Bitcoin fills the $ 42,000 price wick in December as analyst says ‘the party is just beginning’

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Bitcoin (BTC) generated further volatility on January 6, as beach-related behavior experienced its first upheaval in weeks.

1 hour BTC / USD candle chart (Bitstamp). Source: TradingView Open interest remains high

Data from Cointelegraph Markets Pro and TradingView showed BTC / USD fell overnight to hit $ 42,000 for the first time since December.

While not the upward breakthrough many wanted, the move was nonetheless expected, with Bitcoin essentially “filling” the space left after briefly hitting $ 41,800 early last month.

Those lows were the result of a cascade of liquidation, and while long positions also hurt this time around, skepticism remained as to whether the $ 42,000 revision was enough to set a floor price.

“Honestly surprised that we didn’t see more color today if it was accumulated long aggressors. Could still resolve higher, ”wrote analyst William Clemente in a series of stock tweets.

“All I know for sure is that this party is just beginning.”

By the way, this is not a catastrophic message. Honestly surprised, we didn’t see more color today if it was accumulated long aggressors.

Could still resolve upside down. All I know for sure is that this holiday has only just begun. pic.twitter.com/RAgXKzHTnl

– Will Clemente (@WClementeIII) January 6, 2022

Clemente was already among those calling for more volatile conditions already this month and noted that the majority of Bitcoin open interest (OI) futures remain. As Cointelegraph reported, OI hit all-time highs in BTC terms during the week.

As always, those who zoomed out found comfort and familiarity in Bitcoin price action compared to historical behavior.

Fibonacci levels analyzed by fellow analyst TechDev showed that Bitcoin was still at least trying to copy patterns built from previous halving cycles.

Based on everything I’ve shared for months, and until my invalidation points are hit, I remain convinced that there is a higher than not likelihood that #Bitcoin will find support. close to 2.618 linear and going higher, as it has done twice before.

– TechDev (@ TechDev_52) January 5, 2022

“Comparisons with past cycles aside, price / indicator action and volume behavior suggest to me that 2021 was indeed a year of consolidation (similar to 2019-Q3 2020) and this should lead to another boost from the market before the next major correction. He added in his own set of posts as the market began to plunge.

Most fearful market since July 2021

For the average retail investor, however, it seemed like they had little hope left, at least that day.

Related: New Year, Even ‘Extreme Fear’ – 5 Things To Watch Out For In Bitcoin This Week

The Crypto Fear & Greed Index halved during the decline to 15/100 – deep in the index’s “extreme fear” zone and its lowest level since last July.

At that time, BTC / USD was trading at a high of $ 33,000.

Crypto fear and greed index. Source: Alternative.me

As Cointelegraph reported, the nervousness of feelings was already palpable in early 2022.

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