Bitcoin fills $42K December price wick 2022

bitcoin price USD December 2022

 More volatility is expected as Bitcoin market sentiment dives to its lowest in nearly seven months.

Bitcoin (BTC) delivered recent volatility on Jan. 

six as rangebound behavior saw its first shake-up in weeks.

BTC/USD 1-hour candle chart (Bitstamp). Source: Trading View.

Open interest remains high

knowledge from Coin telegraph Markets professional and Trading View showed BTC/USD dropping long to hit $42,000 for the primary time since December.

though not the top side prison-breaking that several had wanted, the movie was, all the same predicted, Bitcoin primarily “filling” the house left once it is shortly wicked to $41,800 early last month.

Those lows we tend tore the results of a liquidation cascade, and whereas long positions conjointly felt pain this point around, skepticism remained on whether or not the revisiting of $42K had been enough to place in a very worth floor.

“Honestly stunned we didn’t see additional of a flush nowadays if this was aggressive longs engineered up. 

might still resolve to the upside,” analyst William Clemente wrote in a series of tweets concerning the action.

Clemente was among those already job for more volatile conditions this month and noted that the bulk of Bitcoin futures open interest (OI) remained. 

As Cointelegraph reported, OI had hit incomparable highs in BTC terms throughout the week.

As ever, those zooming out found comfort and familiarity in Bitcoin worth action versus historical behavior.

Fibonacci levels analyzed by fellow analyst TechDev showed that Bitcoin was still a minimum of making an attempt to repeat patterns engineered up from previous halving cycles.

“Comparisons to past cycles aside, price/indicator action and volume behavior recommend to me that 2021 was effectively a year of consolidation (similar to 2019-Q3 2020) which is probably going to steer to a different market impulse before future major correction,” he accessorial in his own set of posts because the market began to dip.

The market most fearful since July 2021

For the typical retail investor, however, it looked as if there was very little hope left — a minimum of on the day.

The Cryptocurrency, worry & Greed Index halved throughout the dip to 15/100 — deep among the Index’s “extreme fear” zone and its lowest level since last July.

At that time, BTC/USD was listed at most of $33,000.

As Cointelegraph reported, jitters in sentiment were already palpable as 2022 began.