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Bitcoin gains after $46K drop as ‘bottoming out’ continues into 2022

Bitcoin (BTC) The market has not set its course at the end of the year, so it recovered from the new lows on December 30th.

BTC / USD 1-hour candlestick chart (bitstamp). Source: TradingView

$ 46,000 may not mark the floor

Data from Cointelegraph Markets Pro When TradingView BTC / USD bounced back to $ 47,731 with a bitstamp, showing that it reversed almost all of the previous day’s losses.

Before Wall Street opened, the pair was still above $ 47,000 as traders warned that the volatile BTC price action wasn’t over yet.

“It’s been a pretty boring market these days, it’s just the process of bottoming out Bitcoin,” said Coin Telegraph contributor Michaelëlvan de Poppe. wrap up..

“We have retested and bounced $ 46,000 as support, but we may need to liquidate below the lows before doing the upside again.”

Its liquidity was between $ 44,000 and $ 45,000 on the day, and Bitcoin firmly reestablished the range surrounded by resistance of over $ 53,000 at the beginning of the week.

Against the backdrop of illiquid holidays, the possibility of a sharp rise or fall remained.

“As the potential for leverage squeeze increases, trading volumes are declining overall,” Grassnode, an on-chain analytics firm, said in the latest edition of its weekly newsletter. Week on chain..

“Quiet trading activity is typical towards the end of the year, but on a 7-day average, futures market volume has fallen 16% year-to-date. Volume has diminished and open interest (on centralized exchanges). The increase in is a combination of the following: in the coming weeks, at least in favor of localized leverage squeeze. “

That squeeze, veteran trader Peter Brandt Insisted This week hasn’t happened yet.

Not everything is quiet among traders

As a coin telegraph reportIt was that the macro market was making headlines fresh, suspicious, but at record highs after Christmas.

Related: Bitcoin died 45 times in 2021 as the media is still eager to post a BTC obituary

At the same time, institutional interest in Bitcoin emerges Relatively lowIt features the overwhelming performance of the US’s first Bitcoin futures exchange-traded fund (ETF).

“The total open interest of futures has almost doubled this year, increasing by $ 9.57 billion (97%) to a total of $ 18.87 billion. This week alone, mainly led by Binance traders, about 25 $ 100 million in open interest has increased. ”Nevertheless, Glassnode was observed.

Bitcoin Futures Open Interest Chart. Source: Coinglass

Binance’s BTC balance increased throughout December, which is potentially transfer Huobi Global Chinese user.