The year-end rebound that many cryptocurrency traders hope for seems to have to wait until 2022, because Bitcoin (Bitcoin) The bears had the upper hand on December 28 and pushed the price of BTC below the support level of $48,000.

Data from Cointelegraph Markets Pro and Transaction view It shows that the early morning wave of selling broke through the BTC support level of $50,000, followed by the second wave of selling in the early afternoon, which dropped the top cryptocurrency to a daily low of $47,318 before the bulls managed to prevent the outflow of funds.

The following are the opinions of several market analysts on the reasons behind this latest adjustment, and what to note when 2021 is about to end.

Bearish RSI divergence before reversal

Options trader and pseudonymous Twitter user John Wick provided insight into the technical reasons for the year-end correction of BTC prices. He Post The chart below highlights the bearish “fake” when Bitcoin prices started to reverse.

Vic explained:

“We formed a double top, clearly defined by a bearish RSI divergence. Note how the price trend is rising, while the RSI is trending down. We also have a bearish Alpha Thrust & Squeeze counterfeit.”

May fall to 44,000 USD

Bitcoin’s continued struggle on the 21-week exponential moving average (EMA) is highlighted in the graph below by market analyst and pseudonymous Twitter user Rekt Capital.Weekly chart show Difficulties encountered by BTC in breaking through technical indicators.

According to Rekt Capital, Bitcoin’s price movement is similar to what happened in May, “Bitcoin is going through a few weeks of consolidation between the two bull market EMAs”, and the price may soon return to the level of $44,000. He continued:

“Historically, during this red retest, BTC made a downward core line on the orange area, so there is a chance to re-examine the orange color again.”

related: As the S&P 500 Index hits the 69th all-time high in 2021, Bitcoin loses close to $4,000 per day

Waiting to break through 52,000 USD

The analyst and pseudonymous Twitter user “Don Alt” provided advice on what traders should pay attention to in the coming days and weeks. He Post The chart below shows that Bitcoin is currently in a “pretty clean downward trend.”

Don Alt said that there is nothing to see if BTC continues to trade within the range of current levels. He is now waiting for a clear break above the first red resistance zone in the chart above, which is located near $52,000. Don Alt further explained:

“I started to be hopeful for more than 52,000 US dollars, and the raging bull market of more than 60,000 US dollars is back. Before any of them happen, I will look for deep wicks and focus on other more exciting things.”

The overall cryptocurrency market value is now $2.234 trillion, and Bitcoin’s dominance rate is 40.3%.

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