After trading below USD 46,000, Bitcoin recovered its breath and accumulated a profit of 6%. The largest cryptocurrency by market capitalization is currently worth above USD 48,000.
Bitcoin (BTC) strengthened after some days of uncertainty, and its price recently jumped above USD 48,500. That is its highest value in two weeks and has driven the rest of the cryptocurrency market.
There were both bearish and bullish predictions about the price of Bitcoin at a time when a trend could not yet consolidate. Now, the cryptocurrency is attempting to return to a floor of USD 50,000 to take off.
The pioneering cryptocurrency leads the rest of the ecosystem to profit with this start. For example, Ether (ETH) exceeded USD 4,000 again, with a 6% gain in the last 24 hours. In the case of Solana, it shows a similar performance and is now trading at around USD 180.
Analysts Predict the Price of Bitcoin
There have been many different forecasts about the price of Bitcoin for several weeks. Edward Moya, a senior market analyst at Oanda, believes the crypto space is undergoing significant repositioning. He said this led to unwanted selling pressure, but the medium and long-term outlook remains strong.
Craig Erlam, an analyst at Oanda, noted that Bitcoin is still trading in range after another chaotic week for the markets. However, he explained that the trend is against it despite the strong support of around USD 47,000. The expert considers that cryptocurrencies are entrenched and refuse to allow this year to end negatively.
He said that many expected the price of Bitcoin to reach six figures, alluding to the predictions that it would reach USD 100,000. He stated that people now can cross their fingers and wait for half that amount (USD 50,000).
The monetary policy decision by the US Federal Reserve complied with what analysts expected. However, there was no confirmation of the worst fears in the cryptocurrency market. Jerome Powell decided to double the tapering and foresaw interest rate hikes in 2022, as the risk for persistent inflation is now a reality.
However, Bitcoin, Ether, and most altcoins showed a slight rebound. That proved right those people claiming that cryptocurrencies had already discounted the possibility of moving with their previous drops.
Bitcoin Attempts to Gain Momentum above USD 50,000
The value of Bitcoin recently rose above USD 49,000, but a close below USD 47,000 raises a red flag. That price level has become a veritable waterline for the cryptocurrency, which it should maintain if it intends to stage a Christmas rally.
Erlam said the bearish bias maintaining the most traded cryptocurrency persists as it struggles to generate momentum above USD 50,000. However, the recent falls coincide with global fears about the COVID-19 Omicron variant pandemic in the market.
The bears that pile up in the derivatives market control USD 755 million worth of Bitcoin options. Those assets will expire on December 24th, provided the price remains below USD 48,000.
In addition, the whales seem to be actively buying and entering the market at those prices. Analyst Michaël van de Poppe said that this gives hope that another bullish run may occur before the end of the year.
By Alexander Salazar
