Stepping into 2022, Bitcoin (BTC) falls under the psychological price of $50K, and the main cryptocurrency has been consolidating between $46,000 and $49,000 ever since.
As a outcome, profitability in the BTC market has slipped to a 5-month low.
On-chain metrics supplier Glassnode confirmed:
“The number of Bitcoin addresses in profit (7d MA) just reached a 5-month low of 29,629,091.393.”
On December 28, the Bitcoin market skilled important bearish momentum as greater than 165,000 merchants liquidated their accounts, prompting the lack of $80 billion wiped in the crypto market in a span of 24 hours. Therefore, Bitcoin has not been ready to get well since then because the price continues to consolidate.
Market analyst Will Clemente believes that BTC may enter a volatility squeeze because the month closes. He stated:
“Signal doesn’t come usually, however when it does, you higher listen. Think we enter a volatility squeeze by the top of the month. When it occurs, I’ll let you already know, in addition to any clues that make me really feel assured about place aggression.
Despite the current drawdown in the BTC market, the highest cryptocurrency has been the topnotch-performing asset class three years in a row, dwarfing others like commodities, gold, and excessive yield bonds.
Furthermore, whole transaction charges on the Bitcoin community climbed to $1.017 billion in 2021. Crypto analyst Dylan LeClair noted:
“Bitcoin total transaction fees by year, in USD terms. Record setting year in 2021 with $1.017 billion in total transaction fees paid out to miners.”
With indicators pointing that Bitcoin ought to maintain the $45,000 to $47,000 zone for a bullish momentum to be reignited, it stays to be seen how the benchmark cryptocurrency performs out because the month progresses.
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