Bitcoin could ‘consolidate until 2022’ after a massive crash pushes the price to $ 41,000

On December 4th, Bitcoin (BTC) is hovering around $ 47,000 after a sudden crash confirmed the bulls’ worst nightmares with a daily loss of 22%.

BTC / USD daily chart (Bitstamp). Source: TradingView

Over $ 2.5 billion in crypto liquidations

Data from Cointelegraph Markets Pro and TradingView show that BTC / USD hit a local low of $ 41,960 on Bitstamp, the lowest level since September 30.

With the market in a panic, leveraged positions have been wiped out and traders have given up, with liquidations in the past 24 hours amounting to over $ 2.5 billion.

Crypto liquidation chart. Source: Coinglass

The $ 50,000 will likely become a resistance for quite some time if actions don’t do amazing things,

filbfilb, co-founder of the Decentrader trading platform, in new comments after the fix:

“The magnitude of the movement and distribution probably means consolidation through Q1 next year. The lunar mission is not canceled, but some will think the cycle is over.”

The magnitude of the collapse wiped out some important support levels, including that linked to a $ 1 trillion valuation for Bitcoin, previously a popular option for long bets.

As Cointelegraph reported, concerns were circulating about trader behavior as early as Friday as data showed excess leverage at levels close to $ 60,000.

With this leverage now virtually wiped out, optimism remains among familiar figures. Cointelegraph collaborator Michaël van de Poppe declared the peak below $ 42,000 a “minimum.

We are still in a bull market,

.

Meanwhile, Bitcoin narrowly avoided an attack on the $ 40,000 support, an event that analyst TechDev says would be a reason for “become bearish”Should it form a weekly resistance.

Wait, relax, the market will reveal it,

to his Twitter followers.

“Weekly close below the 20-week SMA ($ 50,800) = worrying. Macro Lowest at Weekly Close ($ 40,000) = Bearish. Losing 2-week RSI low = bearish. Wait, relax, the market will reveal it. If the bullish phase of the cycle diverges substantially from history, I expect the eventual bearish phase to do the same. “

Ethereum maintains strength in the pair against BTC

A small upside comes from Ether (ETH), which has returned to near its highest levels since mid-2018.

Related: Ether will grow parabolic in its pair with Bitcoin, analysts predict

Losing less to Bitcoin in the crash, ETH / BTC reversed the trend to 0.0836.

Hourly chart of ETH / BTC (Bitstamp). Source: TradingView

However, all cryptocurrencies in the top 10 by market cap recorded losses over 10% against the US dollar, led by Polkadot (DOT) with 21%.

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