Bitcoin price appears fastened below $48,000, leading some analysts to forecast “choppy” markets till Q1 2022. 


Inflation considerations and a general sense of dread regarding the longer term of the world economy still place a damper on Bitcoin and altcoin costs and presently the Crypto concern and Greed index is solidly within the ‘fear’ zone wherever it's been place since the start of December. 

Crypto Fear & Greed Index. Source: Alternative

Despite the transient bump in costs seen across the markets following the recent Federal Open Market Committee (FOMC) meeting wherever Fed Chair Jerome Powell indicated that interest rates would stay low for the present, the sentiment within the crypto market continues to wane, communication that 2021 might endwise a pessimistic note. 

BTC price could dampen due to macro concerns

In a recent report from Delphi Digital, analysts noted that the value of Bitcoin (BTC) has been seen to closely track changes in sentiment throughout market downturns and it will typically take a while for the trend to reverse. 

BTC price vs. Crypto Fear & Greed Index. Source: Delphi Digital

Delphi Digital went on to mention that this technical setup for BTC “leaves abundant to be desired” particularly when the value fell back below the 200-day exponential moving average and is within the method of testing its 200-day straightforward moving average. 

A similar setup was seen was following the main market pullback in might 2021 and it absolutely was another 2 months before BTC was able to notice a local bottom. 

BTC/USD vs. 200-day EMA & SMA. Source: Delphi Digital

Coinciding with the market pullback in could and therefore the recent weakness and volatile market conditions is a rise within the volume of stablecoins transacted. the quantity transacted on Dec. fourteen 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 throughout the pullback in might, leading city Digital to warn that each BTC and Ether (ETH) may see their costs oscillate for the rest 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.”

( Jordan Finneseth, Cointelegraph, 2021 )