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Bitcoin Hovers at $47K with Fear as Crypto Market Progresses in 2022

Mon, 01/03/2022 - 12:08
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Tomiwabold Olajide
Fear still dominates the crypto market as 2022 progresses, Bitcoin dabbles at $47K
Bitcoin Hovers at $47K with Fear as Crypto Market Progresses in 2022
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The Crypto Fear & Greed Index's measuring "fear" seems to suggest that Bitcoin traders may have kicked off 2022 with cold feet. Bitcoin (BTC) begins its first week of 2022 hovering around the $47,000 mark.

Crypto Fear & Greed Index
Crypto Fear & Greed Index, Source:

The crypto index, which indicates the market's sentiment, has remained in the ''fear'' territory since 2022 began. Owing to earlier volatility, Bitcoin closed December down 18.91% at $46,211, thus marking its third red December since 2017. Despite Bitcoin closing December in the red, the lead asset rounded off 2021 with 76% gains. The cryptocurrency market presents mixed trading on Monday, with few altcoins posting gains in the last 24 hours.

Bullish predictions, mixed fundamentals

At press time, Bitcoin was trading at $46,885 under the key moving average of 200, which might suggest further downside pressure.

Although 2022 kicked off on a relatively mixed note in terms of price action, bullish predictions are still in place. On Jan. 2, El Salvador President Nayib Bukele shared six bullish predictions on Bitcoin for 2022.

President Bukele predicts that two more countries will join El Salvador to adopt Bitcoin as legal tender. Also, he predicts that the BTC price will reach the much-coveted $100,000 mark in 2022.

As U.Today reported, Bitcoin's hashrate has reached a new record high of 203.5 Exahashes per second, according to data provided by BitInfoCharts. This means that the network is the strongest it has ever been.

Hashrate refers to the total computing power needed for mining new coins and securing the network.

On-chain analytics firm Glassnode noted that the mining hashrate finished 2021 up 27% on the year, after recovering entirely from the aftermath of the China crypto ban, when around 53% of miners were shut off almost overnight.

Despite this positivity, volume across major centralized exchanges remains low. It might suggest weak market activity.

According to veteran analyst Peter Brandt, Bitcoin is yet to show key bottoming signs. In this scenario, analysts pinpoint $40,000-$42,000 as the crucial area to hold for Bitcoin, with action above it matching "accumulation."

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.