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Bitcoin Starts New Year on Down Note, Traders Turn to Technical for Direction

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Steve Sosnick, chief strategist at Interactive Brokers LLC, said, “Bitcoin is acting like another risky asset. In some ways, it is a victim of its success because so much risk capital has shifted to bitcoin and to a lesser extent other cryptos. ,

Technicians are also watching bitcoin’s relative strength index, or RSI, which is near oversold territory.

Strategists at Oppenheimer say that the increased volatility of bitcoin has made it difficult for them to trade. Still, if they use the 200-day moving average stat the same way they do for stocks, they think it could break above $65,000 – as long as it maintains $46,000, they have a Said in the note.

Cryptocurrency overall ended 2021 on a sour note – bitcoin fell nearly 19% in December, marking one of the worst months of the year. The Bloomberg Galaxy Crypto Index, which tracks some of the biggest coins, lost about 23% over that period.

“We are surprised the impact portfolio window dressing has had on keeping the asset class down throughout December,” wrote Matt Malee, chief market strategist at Miller Tabak + Company. And this same issue just might well help it bounce back. New Year.”

This is what is often heard in the crypto space – the faster prices fall, the sooner they can recover. Those watching its wild transformation say that volatility is par for the course and, so far, taken for granted in the world of digital currencies.

“I love crypto, I like bitcoin,” Bultic’s Kathryn Rooney Vera said on Bloomberg TV. “It is in one piece of the alternative portfolio. We are not saying take your entire portfolio and slap it in bitcoin – what we are saying is that crypto has a piece of your alternative portfolio.”

Many analysts say that going forward, crypto prices are likely to improve. Some see more upside, with strategists predicting $90,000 or $100,000 in the cards this year.

“As we begin to look ahead and say what the future holds for crypto, it is likely to be brighter than the month of December,” Art Hogan, chief market strategist at National Securities, said over the phone. “But it’s never going to be an easy path and it’s definitely going to be fraught with a lot of volatility.”

This story has been published without modification in text from a wire agency feed. Only the title has been changed.

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Usama Younus

Usama Younus is the owner and super admin of the site he's is an expert in news editing, tech and entertainment magazine management, and articles editing E.T.C.

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