Well, again, prices jump and plunge in the same day as well, leaving prices almost in the same region. This is what is happening in the crypto space for a few days. Not only is the price of Bitcoin, but most assets are experiencing a similar pattern. Either prices rise at the start of trading hours and fall recently, or vice versa. And thus keep the hazy crypto space above the next move.
It was when US inflation hit the sky that the crypto space rose and the price of BTC saw temporary relief from the bears. But as the news of Evergrande circulated in the market, the gains were quickly shattered. However, as the asset bottomed out below $ 44,000, the bulls quickly entered and accumulated the asset at a reduced price.
Plus, again, the space is shaking with yet another FUD from a hacked exchange that has turned the overall sentiment in the market bearish. It was again fueled by regulatory news series in some countries. Still, techniques suggest it was the best time to enter, and so the whales still accumulated more.
It seems that bulls and bears work together at regular intervals, making huge profits every now and then. On the other hand, newly formed whales like MicroStatergy continue to buy in the trough, while El-Salvador joins them as well. Yet, since the crypto space has gained enormous attention since the pandemic began in 2020, a new era of commerce has begun. Where the bullish or bearish market can be turned on or off in no time.
Also read: What is behind the price gap of Solana (SOL), Cardano (ADA) and Algorand (ALGO)?
What can you expect in the first quarter of 2022?
The current trend has implanted more confusion in the crypto space as the price trend appears to be pre-programmed. There are signs that the trend may change in the next few days which could lead to a noticeable uptrend. However, the price of Bitcoin, above $ 53,500, to bridge the CME gap and propel further seems to be quite hazy.
On the other hand, foreign exchange reserves continue to run out and BTC SOPR indicates paper hands are leaving trading, but strong hands are still in the race. Additionally, the Bitcoin hash rate hits a new ATH as China has lost control of it. According to some reports, 80% of Bitcoin holders have yet to sell while US inflation is expected to stay long.
There is no doubt that the price of Bitcoin could see a decent increase to end annual trading, but could continue to follow a similar trend for some time to come. Bulls that currently remain passive can wait for the price of BTC to reach certain levels to jump. However, the trend ahead appears to be quite bullish.
