After a brief plunge to $41,000 a month ago, the price rebounded partially but failed to hold above the $50,000 figure
The bitcoin price has been struggling to regain the upside momentum these days, staying under the selling pressure along with other cryptocurrencies. The BTCUSD pair slumped from this week’s highs around $52,000 on Monday and has been declining since then. Yesterday, the largest cryptocurrency by market capitalization extended losses to ten-year lows just below the $46,000 figure before bouncing above $47,000. On Friday, the prices continue to oscillate around this level, struggling for direction on the last day of 2021.
Despite the recent retreat, the coin is finishing the year with solid gains, adding more than 60% since January. The digital currency jumped to all-time highs around $69,000 in November and has been correcting lower since then. After a brief plunge to $41,000 a month ago, the price rebounded partially but failed to hold above the $50,000 psychological level that now represents the key immediate upside target.
In 2022, the cryptocurrency market will likely continue to see ups and downs, but the upside pressure will likely prevail as more traditional investors join the party and mainstream adoption keeps growing. As such, the bitcoin price could see fresh all0time highs above the $70,000 figure, bringing expectations for a rise towards $100,000 back in the market focus.
In the immediate term, the bitcoin price needs to regain the 20-DMA, currently at $48,500, in order to retarget the $50,000 figure, followed by the mentioned local highs around $52,000. However, it looks like the coin will continue to struggle in the near term, with downside risks persisting as long as the prices stay below at least the 20-DMA.