Bitcoin is down about 19% in the month of December, dashing hopes of several analysts who were anticipating a blow-off top to end the year. The US Fed’s announcement
that it will shrink its bondbuying program and could increase interest rates three times in 2022, and the uncertainty created due to the omicron variant may have led to a risk-off environment.

However, veteran trader Peter Brandt said in a recent Tweet that Bitcoin’s “key bottoms have occurred with high volume panic capitulation” which has not yet occurred.

Bitcoin has been finding support at the 200-day simple moving average (SMA) for the past few days but is struggling to sustain the rebound. This suggests a lack of demand at higher levels. The 50-day SMA has turned down and the relative strength index (RSI) has been trading in the negative territory, indicating that bears are in control.

A break and close below the 200-day SMA will be a huge negative as that will dent sentiment further and drive away the bulls. The BTC/GBP pair could then drop to £29,000 and later to £26,845. The longer the price sustains below the 200-day SMA, the greater the possibility of an extended downtrend.

Contrary to this assumption, if the price rebounds off the current level and rises above the downtrend line, it will suggest that the selling momentum has weakened. The pair could then rise to the 50-day SMA.

A break and close above this level could open the doors for a possible rally to £45,306.70 and then to the all-time high at £51,000. We will wait for the price to bounce and sustain above the downtrend line before recommending any long trades.

Lastly please check out the advancement’s happening in the cryptocurrency world.

Greetings. This is an introduction to the theory of money, specifically in the context of Bitcoin, or bch price. You can read about economics if you want the theory for everything, or read about Bitcoin Cash if you want just the application of the theory to a real-life application. Many people in the community felt that an upgrade called Segregated Witness, or SegWit, would not adequately solve Bitcoin's scaling issues.