Bitcoin’s (BTC) downtrend prolonged a couple of rungs decrease on Dec. 3 after the worth dropped beneath $54,000 and merchants will word that the BTC/USD day by day chart reveals a notable uptick in promote quantity. 

Crypto Concern & Greed Index. Supply: Various

Buyers appear involved on the emergence of a brand new COVID-19 variant and hawkish feedback from the Federal Reserve. In the meantime, veteran funding icon Charlie Munger added to the fireplace by evaluating the worth motion within the crypto market to the dot-com era that ended with the bubble popping.

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BTC/USDT 4-hour chart. Supply: TradingView

Right here’s a take a look at what analysts should say concerning the present market and what to be looking out for as 2021 begins to wind down.

Robust decrease help at $52,000 to $53,000

The “listless” nature of Bitcoin’s worth motion over the previous few weeks was highlighted by crypto market intelligence agency Decentrader, who pointed to the uneven worth motion on decrease timeframes and the proof of a sluggish downtrend on excessive timeframes as trigger for merchants’ elevated worry “that the bull run could also be over.”

The analysts prompt that after BTC breaks out of its present vary, “the obvious help cluster lies round $52,000 to $53,000” close to the purpose the place the worth broke down in the course of the Could crash earlier within the yr.

Decentrader stated,

“Ought to we get a deeper correction then a robust help space lies across the 200DMA at $46,200 and on the decrease help degree of $44,300. To the upside, a major resistance degree lies on the spherical variety of $60,000.”

Bitcoin and Ether are “on sale” at these ranges

Whereas many have been postpone by the latest worth motion of Bitcoin, David Lifchitz, the managing associate and chief funding officer at ExoAlpha, prompt that “Bitcoin and Ether have been purchased “on-sale” after they hit $54,000 and $3,900” for many who have been in a position to scoop them up at these ranges.

Based on Lifchitz, the worth of Bitcoin continues to be hampered by “the Mt. Gox liquidation saga” and he prompt that BTC buyers are more likely to “stay cautious forward of the distribution anticipated someday in Q1 2021.”

Lifchitz additionally highlighted the unfold and affect of the Omicron variant of COVID-19 as a state of affairs to control as “a nasty outbreak resulting in lockdowns would positively initially weigh available on the market.”

Lifchitz prompt that this might presumably result in one other spherical of presidency stimulus, “which might improve world debt and weaken currencies in opposition to gold and cryptocurrency, whereas on the similar time the humorous cash might be exchanged for immutable ones akin to Bitcoin.”

Lifchitz stated,

“So after an preliminary panic-induced dip, cryptos may reap the benefits of such final result if we seek advice from what occurred beforehand, even when this stays extremely speculative. We’ll know within the subsequent couple of weeks if Santa will come this yr or if he’ll stay on lockdown with COVID!”

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It is beginning to appear to be September 2021 once more

Perception into how the present worth motion is much like a worth pullback that occurred earlier within the yr was offered by analyst and pseudonymous Twitter person ‘Rekt Capital’ who posted the next chart displaying this most up-to-date drawdown together with the drawdown in BTC worth that occurred in September 2021.

BTC/USD 1-day chart. Supply: Twitter

Rekt Capital stated,

“In September, BTC retraced -25%. That is when BTC buyers obtained Extraordinarily Fearful. Then BTC reversed to new ATHs. Now, BTC is down -23%. It is doubtless the Concern & Greed Index will present Excessive Concern very quickly. Comparable retracement depth. Comparable investor sentiment.”

The general cryptocurrency market cap now stands at $2.531 trillion and Bitcoin’s dominance fee is 41%.

The views and opinions expressed listed here are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails threat, it is best to conduct your individual analysis when making a call.