Bitcoin clings to $47,000 after three days of declines as it ends its best year ever
The cryptocurrency market had a modest rebound on Thursday, that continues on Friday, as Bitcoin and the rest of the altcoins, are ready to hold positions on the last day of the year of the consecration of the cryptosphere. The world's most traded digital currency clings to the $47,000 barrier after three days of declines this week, that all but negated the Christmas rally, while Ethereum tries to reconquer $3,800.
As for the alternative currencies ('altcoins'), Cardano, Solana, Avalanche, Ripple or Terra, they also rise moderately, to raise the total capitalization to $2.21 trillion, as a market of low volumes that encourage volatility persist.
However, analysts are not hiding some optimism, because despite having given up around 7% during the last week, Bitcoin is sending out buy signals. Bargain hunters may be on the lookout, ready to enter at any time to take advantage of the lower price of cryptoassets, since everything points to the fact that, after closing a December in which the world's largest cryptocurrency lost around 17% of its value, a rebound that would last several days could be served.
Moreover, during the last four weeks, the cryptoasset has drawn a new price range, between $45,000 as support and $52,000 as resistance, which it respects at all times. However, experts believe that the area between the December 4th lows at $42,000 and $40,000 as a psychological figure, offer a support of great entity for the queen of cryptocurrencies.
"There is nothing to suggest that Bitcoin’s recent $45,000 to $52,000 is under threat," commented Jeffrey Halley, analyst at Oanda, and "only a daily close above or below those levels’ hints that a new directional move is in play."
However, the repeated failure to manage to stretch any bounce above $50,000 sends negative signals, noted Naeem Aslam, head of analytics at AvaTrade, as it shows "exhaustion of the current uptrend."
As for Ethereum, its staggering 2021 is not tarnished in the slightest by the 8.5% declines of the past week. The number two cryptocurrency on the market is about to cap a year in which its performance was 400%. This pales, however, to the not inconsiderable 65% that Bitcoin has grown in the last 365 days. They highlight the Ethereum network's efforts to move to a more environmentally sustainable model from a proof-of-participation standpoint, instead of the current proof-of-work, that will culminate in 2022.
From a technical analysis standpoint, the December lows respected at all times the $3,500 level, reinforcing this price level as formidable support for Ether - the Ethereum network unit. From the resistance side, $4,000 is the first level to overcome in order to aspire to renew its November all-time highs.
Other tokens that soared in 2021 are the Terra network's LUNA, which grew by more than 14,000%, Solana's SOL, by more than 11,500%, and the Avalanche project's DOGE and AVAX, that grew by more than 3,000%.