Bitcoin prepares for spike in volatility after holding steady through US stock market bloodbath – FXStreet

Ekta Mourya Ekta Mourya

Bitcoin (BTC) price held its ground despite the US stock market bloodbath on Thursday. Large-wallet investors started accumulating BTC, buying the asset at a discount through the dip. Accumulation by whales signals incoming volatility in the largest crypto asset by market capitalization. 
Also read: Ethereum rival Cardano sharks gobble up 331 million ADA tokens, fuels fear of mass sell-off
Bitcoin large-wallet investors, also known as whales, have scooped up $6.73 billion in BTC, fueling anticipation of incoming volatility in the asset’s price. Over the past 24 hours, Bitcoin price held steady at $16,845 despite the bloodbath in the US stock market seen on Thursday. 
Investors are reconsidering the US Federal Reserve (Fed)’s policy decisions. There is a likelihood that the central bank could pivot anytime soon, to a more dovish monetary policy. This could typically result in a price decline in risk assets like Bitcoin. 
Positive economic data has re-kindled fears that the US Federal Reserve may need to tighten monetary policy longer than expected. This could increase the downward pressure on risk assets like Bitcoin and Ethereum, as 2022 draws to an end. 
In Messari’s Ryan Selkis’ 168-page report with his 2023 predictions for cryptocurrencies, the analyst believes the market direction is influenced by macroeconomic outlook and regulation. 
Whales influence capital supply in crypto markets. Therefore, renewed accumulation of BTC by large-wallet investors implies Bitcoin price could experience volatility before the end of 2022. Large wallets scooped up 400,000 BTC through crypto winter since November 9, based on data from crypto intelligence platform Whalemap. 
BTC accumulation by whales
BTC accumulation by whales 
Bitcoin price chart below reveals a Death Cross pattern, where the 50-day Exponential Moving Average (EMA) crosses under the 200-day EMA. The Death Cross in the chart below was seen in the second week of November and resulted in a steep decline from $20,000 to $16,000 within the same week. 
The most recent Death Cross in the third week of December is a clear bearish re-test for Bitcoin. Capo of Crypto, a leading technical analyst, argues that Bitcoin’s downtrend is intact and the crypto market as a whole is not prepared for fresh upcoming losses. 
Experts on crypto Twitter remain firmly bearish. 
BTC/USDT 4H Binance price chart
BTC/USDT 4H Binance price chart
Bitcoin price could invalidate the bearish thesis if BTC crosses the resistance levels at the 50-day EMA at $16,884 and 200-day EMA at $17,141. Bitcoin price outlook for the end of 2022 remains bearish. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
The crypto market is not making much headway when it comes to recovery since the FTX collapse. Consequently, the fear of volatility has intensified among authorities.
Former FTX CEO is being investigated for fraud and illicit use of customer funds following extradition from the Bahamas. The bail conditions limit Sam Bankman-Fried to conduct transactions worth less than $1,000 at all times.
XRP price shows bears in control of the trend. Still, high-cap investors seem almost certain of a countertrend spike in the coming weeks. This thesis remains neutral but identifies how to engage in a bearish and bullish scenario. price may be setting up for an end-of-the-year decline. CRO will need to display tremendous strength to alter the bearish bias.The bulls will need to hurdle the $0.063 barrier to launch a counterattack.
Bitcoin (BTC) price is traversing a channel that is sloping to the upside. Despite the consolidation, BTC is slowly climbing higher like clockwork. The recent Federal Open Market Committee (FOMC) Meeting on December 15 caused BTC to spike beyond the confines of the channel, but things are back to normal.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and omissions may occur. Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, clients or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.


Leave a Comment

%d bloggers like this: