"There is nothing to suggest that Bitcoin’s recent $45,000 to $52,000 is under threat"

The cryptocurrency market has left notable falls in recent hours, that almost entirely negate Bitcoin´s and other altcoin´s Christmas rally. They settle in the red with declines that have reached 10% in some tokens. The queen of cryptos fell 7% on Tuesday, and now it gives up 3% on Wednesday, testing the $47,000 support that it has respected until now.

"I can’t see any news behind the move, and I suspect year-end book squaring into thin market conditions exaggerated the range," noted Jeffrey Halley, analyst at Oanda. "There is nothing to suggest that Bitcoin’s recent $45,000 to $52,000 is under threat. Only a daily close above or below those levels’ hints that a new directional move is in play," he added.

However, other experts show concern that Bitcoin is failing above $50,000 "because this shows weakness in the current upward trend," stated Naeem Aslam, head of analysis at Avatrade. "If the price continues to trade below this mark, we are likely to visit the early 40K price level again," he explained. Halley, meanwhile, added that "only a weekly close below $40,000.00 will have me concerned that another major downside correction is in play."

At current prices, the 'drawdown' or correction from the last high is 35%, which is not bad at all. "However, this type of correction is our daily bread and butter in Bitcoin," commented José María Rodríguez, technical analyst at Bolsamanía.

"In the medium-term, the bullish structure is still intact, because since today, the rising lows and highs follow each other again and again, and so a downtrend is not built," he explained, as "we do not have a return figure of the current corrective phase as of today." The expert added that we have an important support at the December lows ($45,415 in the future) and that we have an important resistance above at $52,200. This is where the future has stopped, at the tick, on a couple of occasions: they are the highs of the December 7th session and those of Monday.

"If it is able to recover positions from here and beat this control zone, then a small bullish reversal pattern would be confirmed, with a first upward target at around $60,000," Rodríguez concluded.