29.12.202113:05 Forex Analysis & Reviews: Bitcoin failed to stay above $ 50,000

Bitcoin dropped below $ 50,000 on Tuesday, a level that some analysts see as key to assessing the outlook for 2022.

It fell 4.75% to $ 48,600, while Ether, the second largest cryptocurrency, lost more than 3%.

Altcoins such as Solana, Cardano, Polkadot and Dogecoin also dipped on Tuesday.

Lately, investors have withdrawn from the most speculative corners of the world markets, fearing that a downturn in central bank stimulus could cause problems. The extent to which Bitcoin and crypto markets are exposed to this risk is a subject of heated debate.

But overall, there isn't "anything worrying at this point," said Vijay Ayyar, vice president of Luno. He noted that Bitcoin's outlook will remain "bullish" if the levels $48,000 to $49,000 hold.

This year, Bitcoin moved in tandem with riskier assets like US stocks. But this pattern seems to be breaking down this month, as the S&P 500 index rose about 5% in December, while Bitcoin lost more than 10%.

Technical studies suggest that there may be a tipping point for Bitcoin, following a pullback from an all-time high of nearly $ 69,000 in November.

And using Bollinger Bands, Bitcoin touched the upper band last week, but failed to close above it. For some, this means that Bitcoin may find it difficult to make a profit in the short term.

Meanwhile, Katie Stockton, founder and managing partner of Fairlead Strategies, said Bitcoin's next support level is around $ 44,200 based on Fibonacci retracement levels.

In her opinion, the price level of $ 50,000 is not that important, but "have psychological implications". She explained that "Bitcoin is in a consolidation phase and appears to be reacting to short-term overbought."