|

Bitcoin price stalls as Thanksgiving, Black Friday effect fails to materialise

  • Bitcoin price stays under pressure and takes another step back after its short-lived rally.
  • BTC price sees bulls unable to stage test against technical element.
  • Expect to see a possible leg lower as thin volume does not see massive selling as it did last year.

Bitcoin (BTC) price looked promising in the wake of Thanksgiving and the famous biggest spending day of the season: Black Friday. Unfortunately, for the biggest cryptocurrency, none of those events are helping the price action. As people are still digesting the turkey, stuffing and pumpkin pie leftovers, the Black Friday firesale is not getting underway with very little appetite from retail traders.

BTC requires those much-plagued retail traders to break the spell

Bitcoin price is not the only one that is being a bit battered and is looking for direction as any real driving force is missing. Sure, equities closed higher, though not as forceful and with conviction as at the beginning of the week. A similar pattern in EUR/USD goes sideways, and the DXY Greenback barometer is almost unmoved, as all asset classes of financial markets are showing signs of fatigue.

BTC price could next slowly slip back to the supportive levels near $16,020. For a brief moment, it looked like this was the holiday rally that could break above that red descending trend line and at least rally up with $20,000 in sight. Instead, BTC is set to muddle through without any massive sell-off but rather slowly burn lower toward $15,500.

BTC/USD daily chart

BTC/USD daily chart

If this Black Friday feeling does not do the trick, then maybe Santa can usher in excitement with some magic dust to get a last-minute rally in the books for 2022. With only five weeks left in the year, several traders and desks will be looking for that last profitable trade of the year to have a pencil to show for it. Once BTC can pierce through that red descending trend line, expect to see a pop higher toward $19,036 with the monthly S1 support, the 55-day Simple Moving Average and the high of November 21, 2020, triggering a small fade before traders can start to dream about $20,000 again.

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

More from Filip Lagaart
Share:

Editor's Picks

Crypto Today: Bitcoin, Ethereum, XRP trade under sustained selling pressure despite mild ETF inflows

Cryptocurrency prices remain under pressure as a risk-off mood persists on Friday, with Bitcoin consolidating its losses above $62,000. Altcoins, including Ethereum and Ripple, are extending their weakness, trading near lower support levels around $1,600 and $1.12, respectively.

Bitcoin Weekly Forecast: After the bloodbath, everyone looks at $60,000

Bitcoin (BTC) hovers above $62,000 at the time of writing on Friday, weighed down by growing risk-off sentiment due to persistent geopolitical tensions in the Middle East and sticky macroeconomic uncertainty.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit. A reactionary spike in on-chain activity and social chatter, reflecting a strength of community, but fails to absorb the price decline.

Arthur Hayes' “Holy Trinity” is dead: Exits Zcash after Orchard Pool exploit

Arthur Hayes dumped his entire Zcash holdings on Friday, a day after selling his HYPE and NEAR holdings. Zcash is down 13% so far on Friday, extending the 26% drop from the previous day.

Bitcoin: After the bloodbath, everyone looks at $60,000
Bitcoin (BTC) hovers above $62,000 at the time of writing on Friday, weighed down by growing risk-off sentiment due to persistent geopolitical tensions in the Middle East and sticky macroeconomic uncertainty. The institutional sell-off continued to wreak havoc on capital flows, with spot Bitcoin Exchange-Traded Funds (ETFs) recording billions in outflows.