On the last day of the outgoing 2021, bitcoin is quietly and technically recovering. Forecasts and technical guidelines do not change at the same time.
And although few people are trading at this time, let’s see what’s going on behind the scenes of the market and leave a small reserve for returning to trading after the holidays.
Addressable activity in the bitcoin network is growing
Data from the network analytics company Santiment show that at the end of the year, there is a trend towards an increase in address activity in the BTC network. The bullish mood of the DAA/price ratio indicator has historically correlated with price growth. According to the online review, on December 28, the highest activity of addresses in four weeks was noted.
The level of fear is decreasing
After yesterday there was an increase in the level of concerns in the market, today the situation has leveled off a little. According to the Crypto Fear & Greed Index, traders are less scared. And on December 31, the index shifted to the level of 28, which means a shift from yesterday’s “extreme fear” to “fear”.
In parallel, Glassnode notes that there is a small volume of bitcoin trading on centralized exchanges. The holidays are affecting, the “thin market” is confirmed.
There is other good news: Bitcoin shows a negative NetFlow of -658.3 million dollars in the last 24 hours. In the case when NetFlow is negative, outflow exceeds inflow. This means that investors withdraw more bitcoins from exchanges than they deposit. And this may be an optimistic sign for the main cryptocurrency.
Getting ready for the beginning of the year: technical and fundamental forecast
Technically, for bitcoin, recovery is probable to the range of $47,000 – $51,600 per coin. So far, this forecast looks very plausible. But you can’t renounce anything, especially in the thin market and especially in the case of cryptocurrency. Therefore, we are mindful of an alternative scenario – a deeper correction in the area of $ 42,000.
And also remember that in the first week of the year, many traders expect BTCUSD to grow.
The material has been provided by InstaForex Company – www.instaforex.com