Bitcoin's Bearish December: Factors Behind the Downtrend
Bitcoin's Bearish Trajectory in December
Bitcoin experienced a bearish trend throughout December, with a brief fake breakout above $18,000. This movement could see Bitcoin's price dropping below $16,000 by mid-January. The current resistance level is noted at $18,850, indicating ongoing downward pressure.
Factors Influencing Bitcoin's Decline
Several factors contributed to Bitcoin's negative movement. A significant event was the withdrawal of the Mazars Group auditing firm from the cryptocurrency sector on December 16. Mazars was responsible for proof-of-reserve audit services for major exchanges like Binance, KuCoin, and Crypto.com. This development likely shook investor confidence, influencing the bearish trend.
Market Indicators and Implications
Analyzing the three-month futures annualized premium and the 30-day options 25% delta skew offers insights into market sentiment. These indicators reflect the ongoing caution and potential volatility in the cryptocurrency market.
Outlook for Bitcoin
With the current bearish trajectory and resistance levels, Bitcoin may face further declines. Investors and market participants should watch for changes in market conditions and any shifts in sentiment that could affect Bitcoin's price movement. Understanding these dynamics is crucial for navigating the challenging landscape of cryptocurrency investments.
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