Some analysts are predicting “choppy” markets as the remainder of 2021 as the price of Bitcoin is pegged down to $48,000.
The future prediction of the Global economy and inflation concerns are intimidating Bitcoin and Altcoin prices and as we can see that Greed Index and Cryptocurrency are in the ‘Fear’ zone where it has been halted since the starting of December.
Considering the crash in prices as seen in the market, Fed Chair Jerome Powell, recently in the Federal Open Market Committee, exclaimed about the minimum interest rates for some time. The complete belief in the crypto market is slightly disappearing and making it clear that 2021 is going to end at a bad note.
Lesser Bitcoin prices, owing to macro concerns
According to analysts, in the recent report from Delphi Digital, the price of Bitcoin is tracking changes in belief during the slump in the market and in reversing the trend a lot of time will get consumed.
Delphi Digital on the current technical setup for Bitcoin said that “Leaves much to be desired” specifically after the downturn of the prices under the 200-day exponential moving average and still processing to test its 200-day simple moving average.
Following the major market pull out in May 2021, a similar setup was seen and was two months before Bitcoin was active in finding its local bottom.
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The transacted stable coins volume has increased by the volatility of the market and the recent weaknesses and the market pull back at the same time. The daily average is constantly between $10 to $20 however the transacted volume has been increased to $57 billion from December 14.
During the fallback in May, a similar stable coin volume hike has been observed which brings about Delphi Digital to apprise that the prices of both Bitcoin and Ether sway for the residue of the year.
Delphi Digital stated that
“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 Bitcoin and the broader crypto market as well.”
The Market is all set for a rally in Q1 2022
Jarvis labs, Crypto analytics firm has also expressed their expectation of choppy markets and pointed towards early “bottoming” leading to a wide range of data. He also notified that the recent local bottom of Bitcoin is $42,000 which needs to recover soon to $53,000.
The Bitcoin dominance rate is 40.6% and the recent cryptocurrency market cap stands at $2.223 trillion.