Bitcoin & Ethereum Market Overview: 20 December 2021

The price of bitcoin attempted to recapture the $50,000 mark as the new year began, but it does not seem to be fruitful. Instead, BTC will seek another step-down and form a double bottom at the monthly S2. As a result, investors will be able to purchase BTC at a sizeable lower price, with positive expectations for 2022.


Last week, bulls attempted to retake the $50,000 barrier for Bitcoin (BTC), but the move was rejected, forming a bull trap in the making. Conversely, BTC appears to be ending the year on the defensive. Moving into 2022, this indicates that Bitcoin investors might benefit from an attractive discount of $44,088-$43,030, with 2022 expected to be a fabulous year with new all-time highs over $100,000. During the final two trading weeks of 2021, Bitcoin will be purchased at a discount by investors.

Bitcoin (BTC)- With a dramatic bounce back above $50,000, Bitcoin price gave bulls reason to be confident last week. After all, the bulls were rejected at the same level this week, and they were squeezed downward. The benchmark appears to be $43,560. That puts it square in the midst of two historical levels, as well as directly on the S2 monthly support level, which also caught the weakening price action two weeks ago.


Given the number of projections for 2022 that have been released this week and will continue to be released in the coming days, anticipate investors will notice the positive target set for Bitcoin and be interested in taking advantage of the current price discount. As a result, as investors approach Christmas and New Year’s, expect some bullish sparks to develop, with BTC bouncing off that low range around $43,560. By the end of the year, a return to $50,000 would pave the way for a rise into 2022.


The 200-day SMA, which might function as an entrance point for more bears to enter the trade and continue to weigh in on the market movement, is one factor that could ignite further unfavorable sentiment. Bulls in Bitcoin would begin to exit the scene, accepting their losses, and would not return until the next year. Bears would have a free ticket to bring the price even down, to $40,750, testing the psychological $40,000 threshold, which should hold through 2022.


The buying activity for Ethereum has exploded as a result of the effect in emotion triggered by the US central bank’s rate decision. With a U-turn maneuver, ETH bulls are clawing back against the bears. If this influx continues through Christmas, fresh all-time highs for 2021 are likely.

After reaching new all-time highs just a few days earlier, Ethereum (ETH) saw considerable intensification price activity in November as a result of Bitcoin’s falling knife incident. After that, the price of ETH has been hunting for a place where bulls may congregate and feel secure enough to support price movement. Following bouncing off $3,687, estimate a rebound through Christmas to push the price back up above $4,646, with new all-time highs probable by year’s end. The Ethereum bulls are making a comeback.


Ethereum (ETH)- The price movement fluctuated 30 percent in only one week, establishing new all-time highs and creating a new low for the fourth quarter of the year, making trading challenging and not for the fragile or weak-hearted investor. Bulls, on the other hand, took advantage of the US central bank’s shift in tone to exploit the window of opportunity at $3,687. Bulls just needed a whole trading day to go back above $4,063.


However, bulls are concerned that the Relative Strength Index (RSI) would scorch as a result of the increased speed, preventing ETH price action from reaching new all-time highs in 2021. Meanwhile, the ideal outcome would be a moderate but steady increase leading up to Christmas, with a high of $4,646 and a low of $5,000. As a result, 2022 is expected to be a record year for ETH, and it can only continue to climb from there as greater media exposure attracts more investors and buying activity.


Only additional bad Omicron or other Covid-related reports might disrupt this rise, placing pressure on prices on overall risk sentiment. With liquidity dwindling, it may become more difficult for investors to exit their holdings, resulting in rapid drops and more sell-offs in the ETH price, implying a retest at $3,391 and a strong test at $3,018 with the pivotal $3,000 mark just underneath.

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