Crypto market conditions may not be looking as sharp as they should be while the year is about to reach its eventual end. However, the chances of flipping the ordinary-looking conditions into ‘extra-ordinary’ ones need unusual circumstances such as a ‘miracle’.
Bitcoin commenced this week with a price tag of US$ 51,000 plus while only three days are left in the eventual conclusion of 2021. The holiday season has commenced and therefore the traders have minimized the use of their trade tools. 2021 was however remained as an eventful year for Bitcoin as, more or less, its value doubled from 2020.
At the end of 2020 and at the beginning of 2021, the value of Bitcoin was US$ 29,000. As of 27th December 2021 though, the value is hovering above US$ 50,000 with the difficulty in keeping the price above the 50k threshold. However, the expectations from Bitcoin did not provide for the price range of US$ 50K plus. Instead, it was hoped by the majority that the near-end 2021 will take Bitcoin in the price range of US$ 100,000. Instead of achieving the targeted value, Bitcoin in fact faced a massive dip which took the price to a level of US$ 41,800. Since then Bitcoin has been trying to rebound and it has been more than a month that the rebounding is going on.
For the time being there is rather a pin drop silence at the end of Bitcoin. Meanwhile, the authors of the famous ‘Plan B’ are being heavily criticized as to their Bitcoin prediction of US$ 100,000 failed miserably. But the authors are refusing to give up their predictions against the prevailing Bitcoin market conditions. They are however forgetting that thin holiday volumes may turn in more frustration for Bitcoin proponents.
Yet there is another problem that relates to Bitcoin open interest. As is evident from the past few weeks, open interest is coming back into action. Although ‘open interest’ is normally a positive factor but when it is coupled with a declining value then it could be worrisome.
Only a few days left when 2021 will fade away eventually. Meanwhile, Crypto Fear and Greed Index is also indicating that fear is growing. Already, the fear factor had moved into its highest level of 45/100 in the past week. But a slight drop down was seen which brought the fear at the level of 40/100. Again, the fear indication is very sensitive in the Index and suggests a cautious approach for Bitcoin investors.
In these situations, it is very unlikely that before the end of 31st December 2021 there will be any face-melting green candles. The only thing that can bring small value gains for Bitcoin these days seems to be the economy of stablecoins. However, Bitcoin needs an extraordinary push like a miracle to get on the path as described in Plan B.