Bitcoin’s 2022 Close: Navigating a Sea of Calm Amidst Volatility Questions

Where’s the Volatility, Bitcoin?

As 2022 came to a close, Bitcoin (BTC) was like that guest at the party who promised to bring the fun but instead just kind of stood there awkwardly. With prices hovering around $16,500, traders were left pondering when—if ever—the volatility would arrive. Data sourced from various market analytics showed that the after-Christmas daze continued, leaving many scratching their heads as BTC seemed to ignore the significance of the simultaneous closing of various candles.

The Resistance Scenario

On-chain analytics resource Material Indicators weighed in, suggesting that Bitcoin was facing technical resistance, particularly under the $17,000 mark. It was a classic case of, “We’ve seen this story before,” as they noted a lack of significant support above $16,000.

Key points from the resistance analysis:

• Resistance overhead at $17,000 loomed large.
• Sub $17k levels hinted at a local top.
• The market could be unpredictable, showcasing typical Wild West behavior.

Insights from Industry Veterans

Arthur Hayes, former CEO of BitMEX, expressed cautious optimism. While he’d prefer to keep Bitcoin above the FTX post-crash floor of $15,500, his comments highlighted the precarious nature of Bitcoin’s current standing.

On Twitter, he stated, “If $BTC can hold FTX lows that’s positive. Let’s see what the new year brings.” Here’s hoping for a New Year’s miracle!

The Bearish Outlook

Meanwhile, trader Crypto Tony was on the more pessimistic side of the fence, reiterating his belief that Bitcoin would retreat before it could bounce back. His strategy seems to be rooted in the notion of a pullback as a precursor to price accumulation, leading to the next bull run.

A Silver Lining for Bitcoin Dominance?

Despite the grim forecast for Bitcoin’s price, there’s a glimmer of optimism regarding its market dominance. On December 30, analysis from Toni Ghinea indicated an upward trajectory for Bitcoin’s dominance in the crypto market. While predicting more pain for altcoins, Ghinea suggested that BTC dominance would likely climb—closer to a ‘just hold my beer’ vibe for the major cryptocurrency enthusiasts.

Summarized takeaways for BTC dominance:

• Despite potential dips, Bitcoin could see a rise in market cap dominance.
• Altcoins might suffer more than Bitcoin in upcoming weeks.