If a classic trigger from the 2021 bull run reappears this week, Bitcoin (BTC) could witness a "huge bullish rise."
On Dec. 16, on-chain expert Matthew Hyland, also known as Parabolic Matt, called attention to Bitcoin's momentum indicator in a tweet.
Bitcoin has already broken out of a long-term decline on the momentum indicator, which compares closing values to those from the past while still trading around $50,000.
This year has seen two such breakthroughs, which resulted in significant upside for BTC/USD.
In his comments, Hyland said, "The past two occasions it broke out of a multi-month downtrend this year, a major bullish rise followed."
While the momentum data isn't a certainty of "up only" price action, it joins a growing set of on-chain indicators that are flashing bull signals this month.
Hyland is notorious for his overly optimistic price predictions, and he caused a stir last month when he predicted that Bitcoin would reach $250,000 in January 2022, invalidating one of the most widely used stock-to-flow price models.
As the optimistic mood returned to crypto markets on Thursday, alternative cryptocurrencies (altcoins) were focused. Bitcoin (BTC) has remained stable near $46,000, close to its 200-day moving average – a critical technical support level that, if broken, might lead to additional selling pressure.
Bitcoin seems to be oversold at the moment, having lost roughly 2% in the last 24 hours. Meanwhile, ether (ETH) has remained relatively unchanged over the last 24hrs, compared to a 4% spike in Solana's SOL token and a 7% rise in Terra's LUNA token.
Some economists believe the market's positive reaction to the Fed's decision on Wednesday will be short-lived. The Federal Reserve of the United States disclosed an expedited winding down of asset purchases, which market participants had anticipated.
"Long-term investors should not lose sight of the natural tightening of financial conditions as a result of these developments," Alex Kuptsikevich, an analyst at FxPro, wrote to CoinDesk in an email. "The greatest concern for the crypto market is that we've witnessed a monetary regime switch in the previous few months, which is expected to reduce demand for crypto."
Bitcoin back below $50,000 while several altcoins experience bearish action
The price of bitcoin has risen beyond the USD 48,500 resistance level. On the other hand, BTC struggled to acquire traction to break through the USD 49,500 barrier. It is currently trading below USD 47,900 (04:30 UTC), and a move below USD 47,000 is possible.
Similarly, the majority of big altcoins are falling in value. ETH was unable to rise above USD 4,080 and fell below USD 4,000. XRP is having a hard time staying above the USD 0.800 support level. The ADA is down 3% and could drop to USD 1.22.
As ETH falls below $4000, the number of small Ethereum investors rise
Bitcoin price encountered resistance around the USD 49,500 level following a decent comeback wave. BTC has begun a new downtrend and is now trading below USD 48,500. The price has dropped over 3%, and a move below the USD 47,200 support is possible. The next significant support level is around USD 47,000, below which the price could drop to USD 45,500.
Initial resistance on the upside is near USD 48,500. The primary resistance zone is near USD 49,500, above which the price may move higher.
The price of Ethereum struggled to break through the USD 4,080 resistance. ETH has begun a new slide, trading below the USD 4,000 support level, but remains far above the $ 3,900 mark. The next important support level is near USD 3,880, below which the price may test USD 3,650.
If there is another rise, the price could reach USD 4,000. The next major resistance is near USD 4,080 once more.
YFI, CELO, LUNA, WAVES, AR, IOTX, BORA, MIOTA, CRV, HNT, LUNA, and OMG, are among the cryptocurrencies that are up at least 5%.
Meanwhile, LUNA gained 5% and approached USD 65, bringing its weekly losses to less than 3%. On the other hand, IOTA soared 7%, testing USD 1.20 and extending its weekly gains to 3%.
Overall, bitcoin's value is losing ground and is currently selling below the 48,000 mark. The main support is approximately USD 47,000, and a dip to USD 45,500 is possible if it falls below that level.
Do you think bitcoin will experience a bullish movement as hinted by the momentum indicator?
