Originally published on: December 26, 2021
Bitcoin faced a significant drop below $50,000 on December 26 as exchange inflows impacted the market’s mood. The volatility in BTC/USD was evident overnight, with the price hitting $51,500 before retracing back to $49,644. Currently, Bitcoin is hovering around $50,000.
The drop coincided with increased inflows to the major exchange, Binance, where a new wall of resistance at $50,000 was noticed. This behavior suggests a large-volume investor influencing market sentiment, sparking speculation about a new player entering the scene.
Since December 22, exchange balances have increased by 60,000 BTC, from 1.69 million to 1.75 million BTC, according to data from Coinglass. Despite Bitcoin’s dip, most large-cap altcoins remained stable, with Ethereum still holding above $4,000.
Looking ahead, traders are eyeing the $3,940-$4,000 range as a crucial support level for Ethereum. Prominent trader Pentoshi is bullish on ETH/USD, aiming for a push towards $4,400-$4,500.
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