The BTC market has seen a decline in price over the last year, and traders believe that it will continue to trend downward. The experts think that this drop is due to investors taking profits at an early stage of investment.
The “ethereum price” is expected to remain in a choppy market for the remainder of 2021. This is because of the lack of adoption and low liquidity.
Concerns about inflation and a general feeling of apprehension about the global economy continue to dampen Bitcoin and altcoin values, and the Crypto Fear and Greed indicator is now parked in the ‘fear’ zone, where it has remained since the beginning of December.
Fear and Greed Index for Cryptocurrencies. Alternative Source
Despite a temporary spike in prices after the latest Federal Open Market Committee (FOMC) meeting, when Fed Chair Jerome Powell said that interest rates will stay low for the time being, general mood in the crypto market continues to fade, indicating that 2021 may finish on a gloomy note.
Due to macro worries, the price of Bitcoin may fall.
Analysts at Delphi Digital stated in a recent analysis that the price of Bitcoin (BTC) has been shown to closely reflect changes in mood during market downturns, and that the pattern may take a long time to reverse.
The price of Bitcoin compared. the Crypto Fear & Greed Index. Delphi Digital is the source of this information.
The present technical setting for BTC, according to Delphi Digital, “leaves much to be desired,” particularly after the price dropped back beneath the 200-day exponential moving average and is now challenging the 200-day simple moving average.
Following the significant market retreat in May 2021, a similar setup was witnessed, and it took another two months for BTC to establish a local bottom.
BTC/USD versus. SMA and 200-day EMA Delphi Digital is the source of this information.
An rise in the amount of stablecoins traded has coincided with the market decline in May, as well as subsequent weakness and turbulent market circumstances. The amount of transactions on Dec. 14 increased to $57 billion, compared to a daily average of $10 to $20 billion.
Volume of stablecoin transfers each day. Dune Analytics is the source of this information.
During the May retreat, a similar rise in stablecoin volume was noted, prompting Delphi Digital to warn that BTC and Ether (ETH) values might fluctuate for the rest of the year.
According to Delphi Digital,
“As a result, the most probable route ahead is further choppy/sideways price movement leading up to the end of the year, however any large risk-off event or volatility spike that punishes risk assets would likely weigh on BTC and the entire crypto market as well.”
Related: A historically accurate’momentum indicator’ predicts a Bitcoin breakthrough in the near future
The market is preparing for a surge in the first quarter of 2022.
Jarvis Labs, a crypto analytics startup, predicted tumultuous markets and pointed to some early “bottoming” indications based on a variety of data.
30-day returns compared. BTC/USD Jarvis Labs is the source of this information.
Jarvis Labs cited evidence of retail traders purchasing the recent fall as well as other signals that hint to whales accumulating in the present range, but the analysts also pointed out that the short-term holding realized price is $53,000 and advised traders to be cautious “until this level is flipped.”
In conclusion, Jarvis Labs indicated that BTC has reached a local low of $42,000, but that it must quickly rebound to $53,000.
The total cryptocurrency market capitalization is currently $2.233 trillion, with Bitcoin commanding 40.6 percent of the market.
The author’s thoughts and opinions are completely his or her own and do not necessarily represent those of Cointelegraph.com. Every investing and trading choice has risk, so do your homework before making a decision.
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The “here’s why bitcoin traders expect choppy markets for the remainder of 2021” is a blog post that discusses the reasons why Bitcoin traders believe there will be more volatility in the market. Reference: why did bitcoin spike.
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