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.
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%.
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.