The price of Bitcoin is less than $48,000. This prompts some analysts to forecast markets falling by the first quarter of 2022. Inflation concerns and general fears about the future of the global economy continue to hamper Bitcoin and Altcoin prices. The crypto fear and greed index is currently in the “fear” zone; it was parked in early December.
Despite the brief rise in prices observed in the markets since the recent FOMC meeting, Fed Chairman Jerome Powell noted that interest rates would remain low for the time being. The overall mood of the crypto market is declining again. Some suggest that 2021 may end in decline.
Analysts noted that the BTC price closely monitors mood swings in a Delphi Digital report during a market downturn. It can often take some time for a trend to change. The company says the current technical configuration of BTC leaves much to be desired; This is especially true after the price fell below the 200-day exponential moving average; While its 200-day simple moving average is in the testing process.
A similar configuration was in May 2021 after a significant market retreat. It took him two months before the BTC was able to recover. In addition, the recent weakness of the market, setbacks, and volatile conditions in May coincide with an increase in the volume of transactional stablecoins.
A similar increase in the volume of Stabilcoin was during the retreat in May. After that, we had predictions of the price fluctuations of BTC and Ether for the whole year. According to Delphi Digital, the most likely way is a side-price action approaching the end of the year. However, any significant risk events could affect BTC and the broader crypto market.
Bitcoin Price May be Falling – Macro Concern
Similar expectations for sharp markets came from Crypto Jarvis Labs, which also pointed to early lower dynamics signals based on a wide range of data. The company said it needed to recover up to $53,000 in BTC. The total market capitalization of cryptocurrency is currently $2.233 trillion. Bitcoin dominance rate is 40.6%.
However, amid general concern, a bitcoin recovery should not happen by the end of 2021 at this point. Changes in the trading sector are such a natural process that nothing is questioned. There are two weeks left until the end of the year. Hence, experts are watching the dynamics of the most popular cryptocurrency.