Bitcoin (BTC) in the early morning of December 4th continued to set its lowest price in 2 months when the growth momentum was gone.
Bitcoin “finds a new fund” again
After a series of 4 consecutive days of sideways movement to the USD 56,000 – USD 59,000 area, the late night Bitcoin (BTC) price of December 3rd and early morning December 4th was once again strongly corrected, going from the peak of the 24 hours from 57,600 dollars to 51,680 dollars, equal to a loss of 10.3% of its value.
The cryptocurrency market also took a hit with its big brother, with top coins like Ethereum (ETH) dropping from $ 4,654 to $ 4,032.
According to Coinglass statistics, the crypto derivatives market once again took a hit from the decline when up to half a billion dollars was liquidated in the past 4 hours, of which nearly half are Bitcoin orders. Nearly 82% of the cleared orders were long orders, focused on OKEx and Binance exchanges.
The aforementioned price is also Bitcoin’s lowest value since October 5, when the coin recovered strongly after the Chinese ban and quickly broke the $ 50,000 mark for various reasons.
When the motivation is gone
However, it appears that the “moment of growth” is also the reason behind the downtrend of the largest cryptocurrency in the world from mid-November to today. As Coinlive commented, since Bitcoin ETFs went public in October and the BTC event successful implementation of Taproot – the only major update in the last 4 years, Bitcoin seems to have “lost faith” go beyond.
Currently, this currency’s record high is USD 69,000, set on November 10 as the United States announced that the inflation rate has reached a 30-year high. This is a message Good news for the entire cryptocurrency industry in the short term, as it shows the dollar is depreciating, favoring alternative assets such as cryptocurrencies and Bitcoin in particular. However, as this is a reason for “macro” growth and does not stem from BTC’s internal strength, it cannot guarantee the stability of the price line, leading to the correction of Bitcoin.
Positive news like MicroStrategy spent nearly half a billion dollars to buy more Bitcoins El Salvador Even the planned issuance of $ 1 billion in BTC bonds is not enough to revive the market, because these “tricks” are simply too old or have no practical impact at the moment.
There is no upside momentum, but News that crashes Bitcoin much more. First, BTC last week had a huge drop to $ 54,800 according to the global stock market after a new COVID-19 strain called Omnicron recognized and warned by many countries as extremely dangerous. Many analysts fear that Omnicron could wipe out the world’s recovery efforts after the 2020 pandemic because it is more contagious and more virulent than the Delta strain. However, there are no studies showing whether Omnicron can be vaccine resistant.
Later this week, US Federal Reserve (Fed) officials voiced the option to intervene in the market for raise interest rates ahead of schedule in 2022, reduce the inflation rate to pay attention to Omnicron. Although the head of the Fed at this time continues to be Mr. Jerome Powell, the president aims to keep interest rates low to support the recovery of US assets and has just been appointed by President Biden to continue taking charge. the bank the US central bank for another 4 years, but perhaps the Fed will not want to repeat the mistakes of the epidemic in 2020 and will actively reduce inflation with the aim of stabilizing consumer prices.
Also, other negative information such as SEC continues to reject Bitcoin ETFs friendly India change “smoothly” the legal position on the ban on cryptocurrencies and if the project Badger knife Recently hacked by hackers and stealing more than $ 120 million worth of Bitcoin-anchored tokens did not improve the situation.
Over 2,101 BTC has been stolen since @BadgerDAO . According to our investigation, the hacker converted the proceeds into renBTC before transferring them to 14 different BTC addresses. And the ETH worth about $ 700,000 was stolen. We will continue to monitor the stolen funds. pic.twitter.com/2bnCCrfe1R
– SlowMist (@SlowMist_Team) December 2, 2021
What are the prospects for Bitcoin in the near future?
At the moment, what Bitcoin is doing is still finding a support area strong enough to support the price line. It could be $ 50,000, less than $ 48,000, or even a drop to $ 43,000. Only time will give the correct answer.
Even so, some analysts remain optimistic about BTC’s price outlook for December, the peak month of past rallies. PlanB, an analyst who accurately predicted BTC’s price movements for three consecutive months from August to October, still argues that Bitcoin could hit a new high near the $ 100,000 threshold despite the incorrect November forecast.
Stock-to-Flow model on track from March 2019, in 1 standard deviation band (dark blue), aiming for $ 100,000 https://t.co/Zem1teOmWp pic.twitter.com/YKSHesHIp
– PlanB (@ $ 100 trillion) December 1, 2021
With Bitcoin’s price dropping 7% in November and showing no signs of turning back anytime soon, the number of people who believe PlanB’s analysis is decreasing.
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