BTC/USD Analysis – December 22, 2021

Bitcoin Price Prediction

The BTC/USD closed at $48,923.0 after hitting a high of $49,352.0 and a low of $46,683.0. The BTC/USD pair rose for a second day on Tuesday, recouping some of its previous day's losses as market sentiment toward cryptocurrency improved.A cryptocurrency investment platform based in Vienna, Bitpanda, has launched its first exchange-traded cryptocurrency note, which will track the price of BTC and will be traded in euros. The investment platform, worth $4.1 billion, has said that it plans to add more Crypto ETC products in 2022. The Bitpanda Bitcoin ETC is physically backed by bitcoin and is listed on Deutsche Boerse'sXetra market.

Xetra has hosted ETPs from 21 Shares, ETC Group, and Wisdom Tree. However, the introduction of physical cryptocurrency-backed-ETPs has not favored the U.S. According to Bitpanda, issuing an entirely EU-based BTC ETC with the euro as its base currency will offer exposure to an alternative asset class. This news added to the positive sentiment in BTC/USD on Tuesday and pushed its prices higher.

Another factor contributing to the rise in BTC/USD prices could be China's cryptocurrency ban. Some experts think that Houbi completed its China exit last week, which might have slowed the selling pressure from Asia and pushed BTC/USD higher. China's cryptocurrency exchange Huobi said in September that it would retire all existing users in mainland China by the end of this year amid the tougher measures on crypto trading announced by China. As a result, the reduced selling pressure from Asia added upside pressure to BTC/USD.

Meanwhile, the U.S. dollar was also weak across the board, which ultimately added further upside pressure on the BTC/USD pair, as both share a negative correlation. The US Dollar Index, which gauges the greenback's value against a basket of six major currencies, fell to 96.34 after the risk-on sentiment emerged in the market. The optimism prompted by the news of corona virus pills' authorization by the U.S. FDA eased concerns about the Omicron variant. The pills from Pfizer and Merk will be used to treat corona virus and reduce its impact on the global economic recovery. All these reports had a negative impact on the safe-haven U.S. dollar and helped BTC/USD remain higher for the day.

BTC/USD Intraday Technical Levels

Support Resistance

47286.6 49955.6

45650.3 50988.3

44617.6 52624.6

Pivot Point: 48319.3

BTC/USD - Technical Outlook

Bitcoin price created a base and began a new upward trend over the $46,500 barrier. BTC accelerated its rise above the $47,500 mark and the 100 hourly simple moving average. The price rose so far that it burst through the $48,500 resistance level. A convincing rise over the 76.4 percent Fib retracement level of the crucial fall from the $48,289 swing high to the $45,600 low was observed. The bulls even drove the price above $49,000.

A high has been made near $49,600, and the price is presently showing several optimistic signs. For instance, on the hourly chart of the BTC/USD pair, a key ascending channel is building with support near $48,750. The significant initial support is close to $49,000. It is close to the 50% Fib retracement level of the upward advance from the swing low of $48,295 to the high of $49,600. A break below $49,000 might take the price towards the $48,500 support, below which it could test $48,800.All the best!