Bitcoin rises to $ 46,000 after slipping as the “bottom” continues through 2022

Bitcoin (BTC) rallied from new lows on December 30th as markets remained undecided about its year-end price.

1-hour candlestick chart for the BTC / USD (Bitstamp) pair. Source: TradingView

$ 46,000 may not be the lower limit

Data from Cointelegraph Markets Pro and TradingView showed the BTC / USD pair on Bitstamp bounced to $ 47,731, making up almost all of the previous day’s losses.

Before Wall Street opens, the pair was still above the $ 47,000 mark, however, when traders warned that the choppy BTC price action was not over yet.

Bitcoin rises to $ 46,000 after slipping as the “bottom” continues through 2022
Bitcoin rises to $ 46,000 after slipping as the “bottom” continues through 2022

“Quite boring markets lately. Just a bottom-up process for Bitcoin. ” summarized Cointelegraph employee MichaÃl van de Poppe.

“We’re retesting the 46,000 mark for support, it has bounced back, but we may need to get liquidity below the lows before doing some bull runs again.”

That liquidity was between $ 44,000 and $ 45,000 on the day, and Bitcoin had re-established its range, limited by the resistance of $ 53,000 and more, earlier this week.

Against the backdrop of bank holidays with low liquidity, the potential for sharp upward or downward movements remained.

“In addition to a high probability of a reduction in leverage, we also have a general decline in trading volume.”, noted on-chain analytics firm Glassnode in the latest issue of its weekly newsletter, The Week Onchain.

“Quieter trading activity is typical towards the end of the year, but on an average of 7 days the volume of the futures market has so far decreased by 16%. Lower volume and increasing open interest (on a concentrated exchange) is a combination that will take place in the next Weeks of at least one localized contraction of leverage.

This contraction, argued veteran trader Peter Brandt this week, has yet to occur.

All is not calm between traders

As Cointelegraph reported, it was the macro markets that hit the headlines after Christmas with new, if dubious historical peaks.

At the same time, The institutional interest in Bitcoin appears to be comparatively low, characterized by the disappointing performance of the first US Bitcoin Futures Exchange Traded Fund (ETF).

“Total open interest in futures nearly doubled this year, increasing $ 9.57 billion, or 97%, to a total of $ 18.87 billion. This week alone, open interest has risen by about $ 2.5 billion, mainly led by traders on Binance. ”Still, Glassnode noted.

Open Interest Chart for Bitcoin Futures. Source: Coinglass

Binance’s BTC balance rose over the course of December, possibly due to the migration of Chinese users from Huobi Global.

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