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Cryptoanalyst Sees a Shakeout in 2022, Says January Might Negate Bitcoin Technical Standing

Thu, 01/06/2022 - 13:37
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Tomiwabold Olajide
Bitcoin technical standing at risk in January as cryptoanalyst predicts shakeout in 2022
Cryptoanalyst Sees a Shakeout in 2022, Says January Might Negate Bitcoin Technical Standing
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According to Alex Kruger, a crypto analyst-cum-economist, the cryptocurrency market may be in for a shakeout in 2022. This, he says, is in line with the recent market correction, which pulled the Bitcoin price to intraday lows of $42,470, with longs worth millions of dollars liquidated.

The analyst believes the upcoming shakeout in 2022 will wipe out weak hands and overleveraging.

In response to a market participant who had asked if he was still bullish on January, the analyst gave a mixed answer, stating that January will likely depend on the data. This suggests that Bitcoin might negate technical standing and instead flow with the stats.

Kruger also hints at the next set of data to be released on Friday and Wednesday of next week. December's non-farm payrolls, which will be released on Friday, might grant insight into the health of the U.S. labor market and wage growth.

With this around the corner, the atmosphere across the board could become tense as investors adopt a cautious stance. As U.Today reported, the Crypto Fear & Greed Index has shifted into extreme fear as investors panicked.

A strong payroll report might boost confidence in the U.S. economy and reinforce expectations that the Fed will hike interest rates in March. Such a development may result in a stronger dollar while pressuring the Bitcoin and equity markets further.

Justin Sun buys the dip

The first trading week of 2022 seems to have kicked off with a shaky start across the board. The broad-based market sell-off could not bring investors onboard for safety, and Bitcoin broke the December support line to the downside and tanked to the $42K mark.

Despite the bearish outlook painted, analysts anticipate a rebound if Bitcoin can hold above the $40-42K region, with the area above it matching accumulation.

Former Tron CEO and current Grenada WTO ambassador, Justin Sun, announced buying the dip with a 100 BTC purchase. At the time of publication, Bitcoin trades at $43,104, down 7% in the last 24 hours.

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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.