"Many were hoping for Bitcoin to reach $100,000, now they are hoping for half that"
The selling session that Wall Street experienced on Thursday weighed on cryptographic assets, as Bitcoin once again threatened the support level it maintains at $47,000. However, the digital currency managed to close above this price, while the rest of the altcoins outperformed the queen of cryptos. If anything, the cryptocurrency's performance shows exhaustion, as indicated by most analysts, as total cryptoasset capitalization consolidates around the $2.2 trillion mark for quite some time now.
"Bitcoin and the big techs took a beating as investors reallocate some of their most profitable risk bets," Edward Moya, senior market analyst at Oanda, wrote in a client note. "The cryptocurrency space is seeing a lot of repositioning and that is leading to some unwanted selling pressure, but the medium to long-term outlook remains strong," he added.
Bitcoin´s spot trading volume on major centralized exchanges was also low on Thursday.
"Bitcoin is continuing to range trade after another chaotic week for the markets," commented Craig Erlam, analyst at Oanda. "On the one hand, the trend is very much against it but it is seeing some strong support around $47,000," he explained, "so it is unlikely to give up this price." The expert also believes that, "Crypto bulls are clearly digging their heels in and reluctant to let it end another stellar year on a negative note." "Many were hoping for six figures by year-end," he added, alluding to predictions that Bitcoin would reach $100,000 before the close of 2021. "Now they may be crossing their fingers and hoping for half that ($50,000)," he concluded.
With Bitcoin 33% below its November all-time highs, the queen of digital currencies is not out of the woods yet, as the bearish let their claws show in the short term. However, the truth is that Bitcoin's technical picture has not changed because of anything specific in the last few sessions. Bitcoin has support just around the corner at last week's lows ($47,215) and resistance at last week's highs ($52,195). "And all of the above within a clear, long-term, underlying uptrend that has not been threatened in the slightest. However, unlike other market moments, no more or less clear potential pattern can be observed," stated José María Rodríguez, a technical analyst at 'Bolsamanía'.
Other experts also warn that as long as the price remains above $46,000, where the 200-day moving average is, there is hope of seeing a brief price rebound towards $55,000 if buyers react to the oversold signals on the charts. Price momentum is starting to turn positive on the daily chart for the first time since October, when these signals preceded a price recovery. This time, however, the uptrend slows down on the weekly chart, which means the upside could be limited beyond $55,000 to $60,000.
As for Ethereum, it is battling with $4,000, a price level that acted as support previously and is now a formidable resistance. Although the number two cryptocurrency left highs above this level on Thursday, up to $4,100, the sell-off limits any attempt by the 'bulls' and brings this token back to $3,900. The technical picture of Ether - the native unit of the Ethereum network - suggests that the price is encapsulated in a range that goes between this resistance and $3,660, in round numbers, with a December 4th low at the gates of $3,500, a barrier that analysts at IG Markets warn it must hold to avoid further falls.
The rest of the tokens are tinged in red, as Dogecoin holds at $0.17 after staging a rally to $0.20 during this week, buoyed by a fresh dose of support from Tesla CEO Elon Musk. This momentum, however, appears to fade quickly.