Bitcoin drops below $ 49,000 as volume continues to decline, altcoins bloody

Bitcoin fell to $ 48,000 on Thursday and has lost almost 5% after rallying above $ 50,000 in the past two days.

The trading volume of the largest cryptocurrency by market capitalization on the centralized exchange continues to decline.

Source: CryptoCompare

Much of the crypto market is also in the red, with Ether down more than 5% to around $ 4,100. The bear market emerged when US stocks fell and the US Dollar Index (DXY), which tracks the value of the dollar against major fiat currencies, rose 0.28%.

Source: Coin360

Edward Moya, Senior Market Analyst at Oanda, said:

“The long-term bullish fall for Bitcoin continues, but things look bearish in the short term. Long altcoin season and short-term bearish sentiment for risky assets as Omicron picks up steam. ”

Meanwhile, Bitcoin continues to struggle below the $ 50,000 resistance.

BTC / USD 4-hour chart with support / resistance levels and RSI. Source: TradingView

The short-term downtrend of the previous month remains in place, which could cap profits between $ 50,000 and $ 60,000.

The cryptocurrency has dropped about 2% in the past 24 hours, although support around the 200-day moving average (currently at $ 46,500) could contain the current pullback.

BTC buying activity remains weak despite some oversold signals on the chart. This reduces the likelihood of a significant upward movement in the new year, especially as the upward momentum on the weekly and monthly charts is weakening.