The crypto space is yet again falling into a bearish trap as Bitcoin price is yet again sliding below $48,000. Following the most dominant crypto, many other altcoins have also inculcated a similar trend. And hence the market is expected to flip to a large extent in the upcoming hours. However, the direction of the flip is currently unknown and so is the next leg.
After consolidating heavily around $47K to $48K levels, Bitcoin did attempt to range above $50K but it remained a very short-lived rally. However, a similar move is expected any time in the next couple of hours. The BTC prices are recovering at a notable pace and hence a remarkable change is expected shortly. Yet some analysts believe the market would flip and pump hard today.
The factors that dive into this speculation are whale accumulating BTC, rise in stablecoins compared to BTC balances, and the BTC hash rate testing an all-time high. On the contrary, the FED’s meeting is on the cards where-in some traders may discuss the looming impact of the stimulus on BTC. And if in case the FED withdraws the stimulus, a notable bearish trend could be all around.
However, at present, the fear and greed index has dropped significantly and according to many sources, many traders have shifted to stablecoins. The stablecoin volume went up to $57 billion today for the first time after the May crash, mainly after the downtrend of Ethereum. Overall, December tends to be a pretty bearish and disappointing month for crypto. As the large-cap cryptos moved sideways since the beginning and are on the verge of going down to hell to end the early trade.