Bitcoin daily losses near $4K as S&P 500 hits 69th all-time high of 2021
Bitcoin (BTC) dropped nearly $4,000 on Dec. 28 as the market offered a sharp reminder that the bull run would need to wait. BTC analysts eyes $44,000BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewData from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting lows of $48,335 on Bitstamp at Dec. 28’s Wall Street open.The pair had passed $52,000 the previous day, this marking a three-week high, before pressure from sellers halted progress.At the time of writing, Bitcoin circled $49,000 as traders took the opportunity to remind audiences of Bitcoin’s ongoing active range.”Humans get bullish at resistance. It’s a thing,” Scott Melker summarized.”Still ranging. Nothing has changed.”The $52,000 trip indeed failed to attack any of the price levels previously identified as turning points, notably $53,000 — Bitcoin’s $1 trillion market cap mark.Popular trader Pentoshi meanwhile identified $44,000 as a potential floor should the downward trend accelerate. Slightly longer timeframes offered a similar outlook based on recent behavior.BTC 4hr:Fulcrum around which price has been pivoting.Bounce or back to the bottom of the channel? pic.twitter.com/BTJR5rN87I— Nunya Bizniz (@Pladizow) December 28, 2021
Zooming out, however, and there were bearish considerations on the horizon. William Clemente, the lead insights analyst at Blockware, identified a potential repeat of behavior immediately after 2017’s old all-time high, which led to an entire year of a bear market.”Judgment day is coming for BTC,” he warned in Twitter comments.Concerns loom over miracle equities readoutsBitcoin thus presented a contrast to macro Dec. 28 as the S&P 500 hit its 69th all-time high of the year.Related: Veteran Bitcoin hodlers are still selling record low amounts of BTC despite 70% gains in 2021Almost a record in itself, stock market exuberance was already ruffling feathers among pundits concerned about a potential chasm between the numbers and empirical reality.Just to put things into perspective: The S&P 500 may close today at another ATH, it would be the 69th ATH this year, 2nd most ever only behind 77 ATHs in 1995, but the average S&P 500 comp is down 18% from its ATH, suggesting a massive amount of weakness underneath the surface. pic.twitter.com/3RsPFP1Ajs— Holger Zschaepitz (@Schuldensuehner) December 27, 2021
As Cointelegraph reported, the United States Federal Reserve will have a decisive role to play in shaping 2022’s market climate when it comes to Bitcoin’s performance.In the meantime, however, BTC/USD faces a low-liquidity — and thus potentially high-volatility — holiday season.