Bitcoin
BTC$22 939.67

-3.65%

Ethereum
ETH$1 680.06

-5.25%

Tether
USDT$1.000237

0.01%

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USDC$0.999848

0%

Binance Coin
BNB$319.45

-1.52%

Binance USD
BUSD$1.000292

0%

Here’s why Bitcoin traders expect choppy markets for the remainder of 2021


17 Dec 2021

#Bitcoin

Bitcoin price appears pinned below $48,000, leading some analysts to forecast “choppy” markets until Q1 2022. Inflation concerns and a general sense of trepidation about the future of the global economy continue to put a damper on Bitcoin and altcoin prices and currently the Crypto Fear and Greed index is solidly in the ‘fear’ zone where it has been parked since the beginning of December. 

Despite the brief bump in prices seen across the markets following the recent Federal Open Market Committee (FOMC) meeting where Fed Chair Jerome Powell indicated that interest rates would remain low for the time being, the overall sentiment in the crypto market continues to wane, signaling that 2021 could end on a bearish note.

BTC price could dampen due to macro concerns

In a recent report from Delphi Digital, analysts noted that the price of Bitcoin (BTC) has been seen to closely track changes in sentiment during market downturns and it can often take some time for the trend to reverse. Delphi Digital went on to say that the current technical setup for BTC “leaves much to be desired” especially after the price fell back under the 200-day exponential moving average and is in the process of testing its 200-day simple moving average.

A similar setup was seen was following the major market pullback in May 2021 and it was another two months before BTC was able to find a local bottom.

Coinciding with the market pullback in May and the recent weakness and volatile market conditions is an increase in the volume of stablecoins transacted. The volume transacted on Dec. 14 spiked to $57 billion whereas the daily average had been consistently between $10 to $20 billion.

Daily stablecoin transfer volume. Source: Dune Analytics

A similar spike in stablecoin volume was observed during the pullback in May, leading Delphi Digital to warn that both BTC and Ether (ETH) could see their prices oscillate for the remainder of the year.

Delphi Digital said, “Given this, the most likely path forward is more choppy/sideways price action heading into year-end, though any major risk-off event or volatility spike that punishes risk assets would likely drag on BTC and the broader crypto market as well.”

The market is gearing up for a rally in Q1 2022

A similar expectation of choppy markets was expressed by the crypto analytics firm Jarvis Labs, which also pointed to some early "bottoming" signals according to a wide array of data. Jarvis Labs highlighted evidence that shows retail traders buying the recent dip and other signs which point to whales accumulating in the current range, but the analysts also noted that the short-term holder realized price is $53,000 and recommended caution for traders “until this level is flipped.”

In summary, Jarvis Labs stated that $42,000 is now the local bottom for BTC, but warned that it needs to recover $53,000 soon. The overall cryptocurrency market cap now stands at $2.233 trillion and Bitcoin’s dominance rate is 40.6%.


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Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 78.4% 35 $22 939.67 -3.65% -0.43% $438 548 196 646 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 68.8% 68 $1 680.06 -5.25% 2.68% $204 805 525 877 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 95.6% 1 $1.000237 0.01% 0.01% $66 533 700 340 USDT 7 days price change
4 USD Coin (USDC) USDC USD Coin predictions 96% 1 $0.999848 0% -0.03% $54 011 865 153 USDC 7 days price change
5 Binance Coin (BNB) BNB Binance Coin predictions 71.2% 62 $319.45 -1.52% 10.96% $51 538 467 752 BNB 7 days price change
6 Binance USD (BUSD) BUSD Binance USD predictions 95.2% 1 $1.000292 0% 0.01% $17 756 480 503 BUSD 7 days price change
7 XRP (XRP) XRP XRP predictions 77.6% 36 $0.362409 -3.72% -2.15% $17 519 965 274 XRP 7 days price change
8 Cardano (ADA) ADA Cardano predictions 72% 50 $0.510338 -4.17% 0.93% $17 218 297 210 ADA 7 days price change
9 Solana (SOL) SOL Solana predictions 73.6% 44 $39.52 -6.65% 2.24% $13 768 809 765 SOL 7 days price change
10 Lido stETH (STETH) STETH Lido stETH predictions 93.6% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
11 Polkadot (DOT) DOT Polkadot predictions 68.8% 62 $8.65 -4.95% 7.88% $9 563 739 618 DOT 7 days price change
12 HEX (HEX) HEX HEX predictions 64.8% 70 $0.054819 1.28% 19.27% $9 506 188 307 HEX 7 days price change
13 Dogecoin (DOGE) DOGE Dogecoin predictions 81.6% 28 $0.068036 -7.62% 1.11% $9 026 356 228 DOGE 7 days price change
14 Avalanche (AVAX) AVAX Avalanche predictions 70.4% 55 $27.33 -3.28% 16.23% $7 788 396 850 AVAX 7 days price change
15 Dai (DAI) DAI Dai predictions 92% 1 $0.999960 0.02% -0.02% $7 525 786 587 DAI 7 days price change

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