The price of BTC registers a fall of 4.27% this Friday, operating just above US$ 47 thousand. However, the history of cryptocurrency gives investors reasons to remain optimistic. In 2020, the price of BTC appreciated 50% in the last two weeks of the year.
Last year, after renewing its historic high, the BTC entered a strong appreciation trend. As a result, the cryptocurrency appreciated from US$20,000 to US$29,000, the price reached on December 30th.
If the movement occurs again, the BTC could close the year at US$ 70.5 thousand and, therefore, would renew its maximum.
In the medium-term comparison, the performance of cryptocurrency is even stronger. After all, three years ago the BTC reached its bottom of US$ 3,100, on December 15th in 2018. In other words, the price has appreciated 1,516% since that date.
Can scenario be repeated?
Most traders attributed the recent price drops to the US central bank (Fed), which could signal an interest rate hike early in the year. This policy could affect the price of risky assets, including cryptocurrencies.
But the Fed’s decision was milder than expected. Interest rates will indeed be raised, but not until 2022. That way, with the end of the fear, the BTC can be prepared for another step, according to Venture Founder, an analyst at CryptoQuant.
He believes that, with the end of macroeconomic fears, the technical aspects of the BTC are still intact, with a “tiny” bullish divergence from the Relative Strength Index (RSI) forming.
In other words, the RSI points to a strengthening of the bullish price movement. Therefore, the analyst highlights that the general momentum could change and the BTC could replicate the 2020 execution.
For that to happen, the BTC needs to break through resistances and reach at least as much as $51.5 thousand, to establish a support at $46,000. If it breaks the $51,000, the price should gain momentum to seek new valuations.
Now that the Fed day is over, on short term TA, nothing has changed for #BTC, still making lower highs here.
Maybe $46k was bottom, maybe not. We need to at minimal to see $51.5k (first higher high) to signal a potential bottom in this correction. pic.twitter.com/4fJul0ejPh
— venturefoundΞr (@venturefounder) December 16, 2021
A year of volatility
This year started off on a high, with BTC frequently mapping new ATHs. It peaked at $65,000 in April, when everything looked optimistic, but fell in value in the following months, as China reiterated its ban on encryption and the firing of miners.
The performance of the second half, especially in the beginning of November, generated optimism in the market. In the first half of the month, the BTC returned to its maximum and reached US$ 67,000. With that, the market renewed hopes for a more positive year.
However, the price dropped over the second fortnight and even lost 30% of its value. The price closed November with a drop of 7.11%, giving back all the gains obtained.