Bitcoin Is In High Desire But Is It Still Bullish In 2022?

Bitcoin Is In High Desire But Is It Still Bullish In 2022?

2022-01-07 | Daniel Smith

Bitcoin Is In High Desire But Is It Still Bullish In 2022?

Since reaching an all-time high of $67.5k, Bitcoin's trend has been negative. Recovery had been gradual during December, and PlanB's prediction of Bitcoin hitting $100,000 by December had become a farce.

Despite on-chain evidence, it appears that the king currency will maintain its pace until the start of 2022.

Bitcoin is in high desire, but bullishness isn't really?

As we approach 2022, some have projected on a bullish or corrective motion. Nevertheless, prices have continued to plummet since the 8.3 percent price drop on December 28.

Regardless of the fact that the macro environment is gloomy, investors remain unmoved in their enthusiasm for obtaining BTC.

Examining Liveliness, we can see that the signal has been in a significant downturn throughout the larger part of 2021. This indicates the ratio of coin days made to coin days eliminated.

Therefore, even if values are correct, the increment in inactivity and/or HODLing is not exactly unexpected, given that investors are aiming to acquire as many as feasible currently, at the least feasible price.

It's also how Bitcoin is becoming increasingly illiquid. Investors are buying Bitcoin but not selling it in the anticipation of a surge.

Around 50k BTC valued at $2.3 billion have been illiquid in the past month only, meaning they are languishing in a wallet that hasn't witnessed transactions in a while. Essentially, this is the product of a larger accumulating mentality.

Sadly, their optimism about demand might not be enough to boost Bitcoin's price while the overall market mood remains pessimistic. This might possibly be due to the ongoing worry that started about a month earlier.

Furthermore, ADX's indicator of the rising intensity of the active trend — decline rules out the likelihood of a near-term rebound.

The $51k resistance level is yet again the essential and mental test of bullishness. Passing it would give Bitcoin the confidence it needs to continue its surge; nevertheless, till then, Bitcoin bulls should temper their ambitions and leave $100k off their thoughts.

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