Bitcoin climbs to $17,050 as analysts warn of a volatile end to 2022

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(Kitco News) – Global asset prices rose on Tuesday as markets managed to turn the tide and rebound after an initial bout of weakness sparked by a Bank of Japan decision to adjust its bond cap. State at 10 years. The central bank’s actions stoked already existing concerns that monetary tightening by central banks could trigger a global recession, but financial markets were able to rally as the day progressed.

Major equity indices managed to narrowly avoid a fifth straight day of losses as the afternoon rally saw the S&P, Dow and Nasdaq all end in the green, up 0.10 %, 0.28% and 0.01%, respectively.

Data from TradingView shows that the price of Bitcoin (BTC) reversed course after hitting a low of $16,285 late Monday and hit a daily high of $17,050 around midday Tuesday before pulling back to support at $16,875. .

BTC/USD 4 hour chart. Source: Trading View

While the upward move was a welcome sight for many, it did little to change Bitcoin’s overall picture, with Kitco senior technical analyst Jim Wyckoff noting that “neither the bulls nor the bears have short-term technical advantage”.

This suggests traders will continue to see “more choppy and sideways trading on the daily chart through year end – barring a major fundamental market shock,” Wyckoff concluded.

Further validation of the volatile nature of the market over the past week was provided by analysts at Arcane Research, who noted that “BTC has touched both December highs and lows over the past seven days. in a week heavily influenced by macro events”.

The highs were hit after the release of promising CPI numbers, while the lows came in the days following the Federal Open Market Committee meeting where Fed Chairman Powell delivered a hawkish message signaling further rate hikes. Bitcoin has largely moved in step with US stocks over the past week in response to these developments.

“In summary, this correlated response to important macroeconomic developments suggests that correlations to other risky assets will remain relevant in BTC price discovery,” the analysts said. “The macro weeks ahead are much calmer with few known catalysts, and the market could face another downturn as we approach the end of this otherwise dire year.”

Altcoins tend to rise

Altcoins also caught an afternoon bid higher by Bitcoin, with some tokens in the top 200 managing to post double-digit gains amid the spike in activity.

Daily performance of the cryptocurrency market. Source: Coin360

The day’s top gainers include a 25.08% spike for Lisk (LSK), a 13.55% gain for Secret (SCRT), and an 11.26% increase for Magic (MAGIC).

The overall cryptocurrency market capitalization now stands at $814 billion and Bitcoin’s dominance rate is 39.9%.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.

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