Bitcoin daily losses near $4K as S&P 500 hits 69th all-time high of 2021

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/USD 1-hour candle chart (Bitstamp). Source: TradingView

BTC analysts eyes $44,000

Data 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.

Zooming out, however, there were bearish considerations on the horizon. William Clemente, 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 readouts

Bitcoin thus presented a contrast to the macro on 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 2021

Almost a record in itself, stock market exuberance was already ruffling feathers among pundits concerned about a potential chasm between the numbers and empirical reality.

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.