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Bitcoin Seesaws Between Gains And Losses After December Swoon

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EDITOR'S NOTE: Bitcoin is down 15% in December and “seesawed’ up and down, testing a technical floor that could see the digital asset slide all the way down to $40,000. Now, experts worry about the fact that “Bitcoin is an emblem of volatility, and a major question heading into 2022 is whether all its gyrations will eventually leave it lower rather than higher as the tide of pandemic-era stimulus recedes,” per Yahoo! Finance. Analysts are split about what this means for Bitcoin in 2022. Some are optimistic, but the cryptocurrency doesn’t have the long history of success during inflationary times that something like gold does, so no one can be certain.

(Bloomberg) -- Bitcoin seesawed between gains and losses Thursday as it tested a key technical level that over the past two years has tended to act as a floor for the world’s largest cryptocurrency.

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The digital asset rose as much as 1.1% and was trading around $47,350 as of 9:05 a.m. in New York. It’s down more than 15% this month amid a broader retreat in the crypto sector.

Bitcoin’s drop has taken the token to its 55-week moving average, a level it effectively held after a December flash crash and during the mid-year embers of a crypto rout. The technical study suggests a decisive break below the average would put a slide to $40,000 in play.

Katie Stockton, founder and managing partner of Fairlead Strategies, an independent research firm focused on technical analysis, points out that according to one model, Bitcoin has notched a new short-term buy signal. It suggests a two-week rebound, although it is “low-conviction” because by another measure, conditions do not appear to be oversold, she said.

Bitcoin is an emblem of volatility, and a major question heading into 2022 is whether all its gyrations will eventually leave it lower rather than higher as the tide of pandemic-era stimulus recedes.

Read more: Forget Bitcoin and Ether, the No. 3 Coin Gained 1,300% in 2021

Rosh Singh, CEO and founder of Quadency, says it’s possible that retail investors have been distracted by massive rallies in some alternative coins.

“That puts some pressure on Bitcoin as well,” Singh said in a phone interview. Still, he adds that “a lot of people in crypto are pretty optimistic about the next year and think we should see a rally with the way that things have been going.”

(Bloomberg) -- Bitcoin seesawed between gains and losses Thursday as it tested a key technical level that over the past two years has tended to act as a floor for the world’s largest cryptocurrency.

Most Read from Bloomberg

The digital asset rose as much as 1.1% and was trading around $47,350 as of 9:05 a.m. in New York. It’s down more than 15% this month amid a broader retreat in the crypto sector.

Bitcoin’s drop has taken the token to its 55-week moving average, a level it effectively held after a December flash crash and during the mid-year embers of a crypto rout. The technical study suggests a decisive break below the average would put a slide to $40,000 in play.

Katie Stockton, founder and managing partner of Fairlead Strategies, an independent research firm focused on technical analysis, points out that according to one model, Bitcoin has notched a new short-term buy signal. It suggests a two-week rebound, although it is “low-conviction” because by another measure, conditions do not appear to be oversold, she said.

Bitcoin is an emblem of volatility, and a major question heading into 2022 is whether all its gyrations will eventually leave it lower rather than higher as the tide of pandemic-era stimulus recedes.

Read more: Forget Bitcoin and Ether, the No. 3 Coin Gained 1,300% in 2021

Rosh Singh, CEO and founder of Quadency, says it’s possible that retail investors have been distracted by massive rallies in some alternative coins.

“That puts some pressure on Bitcoin as well,” Singh said in a phone interview. Still, he adds that “a lot of people in crypto are pretty optimistic about the next year and think we should see a rally with the way that things have been going.”

Originally posted on Yahoo Finance.
 

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