Bitcoin Dips $2.5K on New Year’s Eve – Time to Buy BTC Coin?

• Bitcoin has dropped by more than $5,000 in the last few days after failing to break through $52,000 earlier this week. 
• A bullish crossover above 50 EMA lines can trigger an uptrend until 49,600 or 50,400 resistance levels.
• The Bitcoin price prediction remains bearish below the $47,550 trading level.

The crypto market suffered losses at the start of the new year, with bitcoin falling under $47,000; the only larger-cap exemption is AVAX. Following yesterday’s unexpected price surge beyond $48,000, bitcoin plunged to below $46,000 just hours later. Altcoins are also red, with the cryptocurrency market cap dropping by more than $60 billion.

With growing interest in blockchain and crypto as a whole, this might be a good opportunity to buy Bitcoin and rise with the market.

On New Year’s Eve, Bitcoin fell by $2.5K.

Bitcoin has dropped by more than $5,000 in the last few days after failing to break through $52,000 earlier this week. As a result, the asset was trading below $47,000 for several days in a row. The scenario changed quickly yesterday when Bitcoin launched a massive price pump that sent it up by more than $1,500, and as a result, it surpassed $48,500. However, it failed to maintain its rising trend, to the contrary. Instead, the bears arrived and pulled the asset down by more than $2,500. As a result, BTC fell below $46,000, becoming the lowest price point in more than ten days.

Despite having recovered more than $1,000 since then, bitcoin’s market valuation has fallen below $900 billion. Yesterday, alternative coins made strong advances. Ethereum has finally recovered from its recent price declines and surpassed $3,800. However, a daily 2.3 percent drop has reduced the value of the second-largest asset to around $100 less.

Price analysis of altcoins

Most of the altcoins traded bearishly on Friday, New Year’s Eve. Binance Coin (-2%), Solana (-2.5%), Cardano (-3.5%), Ripple (-1.5%), Terra (-1.5%), Polkadot (-3%), Dogecoin (-2%), and Shiba Inu (-2%) all experienced significant losses (-2.3%).The sole exception among the larger-cap cryptocurrencies is Avalanche. AVAX has risen by more than 3% in a single day and now trades at around $110.

SushiSwap (-9%), Uniswap (-7%), IOTA (-7%), Algorand (-6%), Gnosis (-6%), NEAR Protocol (-6%), and other protocols have also seen reductions. Since yesterday’s peak, the total market cap of all crypto assets has dropped by more than $60 billion, to slightly over $2.2 trillion.

Bitcoin liquidations continue

As the year comes to a close, bitcoin liquidations have persisted. The year has been shaken by liquidations that have surpassed the $100 billion mark, and there appears to be no end in sight even as 2022 approaches. Given the recent slump, long-term traders have had to suffer the brunt of the losses. As bitcoin looks destined to close the year below $50,000, these losses will likely continue for the rest of the year.

Data from Coinglass’ 12 and 24-hour scales suggests that bitcoin liquidations have not slowed significantly. As of this writing, this figure has risen for the previous 12 hours and has surpassed $31 million in that time. The 24-hour volume is substantially higher at $46 million, yet it indicates more losses in the last two hours than the entire day.

This is consistent with the broader pattern of 2021, which has seen long-term traders lose greatly in the market. While money was earned for these long-term traders due to the market’s multiple bull rises, the crashes were abrupt and savage, resulting in quick liquidations in the billions of dollars.

Bitcoin short traders have done well in the slump as bears continue to pull down the price of BTC. The vast majority of digital asset liquidations have been for long-term traders. The biggest volume has come from the crypto exchange Binance, which, given its trading activity, hosts the bulk of the participants in the market.

Bitcoin technical outlook – Downward trendline to extend resistance at $47,550

The Bitcoin price prediction remains bearish below the $47,550 trading level. The leading cryptocurrency pair, BTC/USD, has tested the support level of $46,500, which is being extended by the most recent low on the 2-hour chart.

In the 4-hour timeframe, the 50-day exponential moving average (EMA) supports a downtrend at the $47,600 level. The formation of 2-hourly candles under the 50 EMA line signals the chances of a bearish trend continuation in Bitcoin. BTC/USD’s immediate support stays at the $45,700 level, and a break below this could lead BTC’s price towards the $44,570 level.

On the flip side, continuing an uptrend could lead BTC/USD towards the 48,600 level. A bullish crossover above 50 EMA lines can trigger an uptrend until 49,600 or 50,400 resistance levels. The RSI and StochRSI are held in a selling zone. Therefore, the idea is to look for a sell trade under the 47,600 level and vice versa. All the best.

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