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Analysts warn: BTC drop to as low as $ 44,000 possible

 


There was a double peak ahead of Bitcoin's dip to below $ 48,000 on December 28th. Some analysts believe the price could fall as low as $ 44,000 before resuming its upward trend.


It looks like the year-end rally that many crypto traders have been hoping for will have to wait until 2022. In Bitcoin ( BTC ), the bears gained the upper hand on December 28, bringing the BTC rate below the support at $ 48,000. 



This was followed by a second wave that caused the largest cryptocurrency to drop to a daily low of $ 47,318. Here the bulls were able to intervene and stop a further decline.


What are market analysts saying about the reasons for this latest correction and what should we look out for towards the end of 2021?


Bearish RSI divergence close to reversal


Twitter user John Wick gave some technical reasons for this correction shortly before the end of the year. He posted the following chart showing a bearish "fake out" as price gradually reversed.


Wick stated:


"There was a double peak, which was clearly determined by the bearish RSI divergence. Note how the price development trended up while the RSI trended down. There was also a bearish alpha thrust and squeeze fake out."

Potential decline to $ 44,000


Bitcoin's struggle with the 21-week EMA can be seen on the following chart by market analyst Rekt Capital. The weekly chart shows how difficult it was for BTC to break out of the technical indicator.


According to Rekt Capital, this price development is similar to a scenario that existed in May. "Bitcoin is consolidating for several weeks between the two bull market EMAs". The rate could soon drop back to $ 44,000. He further stated:


"Historically, BTC has seen wicks down into the orange zone on that red retest. Therefore, a further dip into the orange zone is possible."



Waiting for breakout above $ 52,000


The analyst Don Alt has made some suggestions of what traders should look out for over the next few days and weeks. He posted the following chart, which shows that Bitcoin is in a "fairly clear downtrend" for the time being.


Don Alt said there isn't much to see as long as Bitcoin is in a range at current levels. He is waiting for a clear breakout above the first red resistance zone on the chart above, which is around $ 52,000. Don Alt continued:


"Above $ 52,000 I would hope, above $ 60,000 the wild bull market would be back. Until either of those two levels is reached, I will keep an eye out for deep wicks and concentrate on more exciting things."


The total market capitalization of all cryptocurrencies is now 2.234 trillion. US dollars and Bitcoin's market share is 40.3 percent.

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