According to Cointelegraph: Bitcoin (BTC) begins the new week in uncertain territory as sell-offs from whales alter the market dynamics. The recent pause in BTC's price growth has done little to assuage traders' apprehensions as the year-end approaches with many anxiously awaiting the yearly candle's conclusion.
Macro data releases will continue throughout December, potentially impacting short-term volatility as markets digest decisions made by the Federal Reserve last week. This includes U.S. gross domestic product (GDP) figures and the anticipation of a spot exchange-traded fund (ETF) approval.
Analysts noted that Bitcoin lost its 21-day moving average at the beginning of this week, which, according to trading resource Material Indicators, suggests the trend is "inherently bearish". They also highlighted several key resistance and support levels for BTC with the next Federal Open Market Committee (FOMC) meeting expected to influence future changes.
Despite the ongoing volatility, the market sentiment within crypto and beyond is still categorized by greed, indicating potentially resilient conditions for further upward movement as disbelief continues to play out.
Recent data from Glassnode revealed that the number of new BTC addresses has been on the decline during December. Approximately 373,000 addresses appeared in an on-chain transaction for the first time on Dec. 17, a noticeable dip that has sparked concerns about the sustainability of Bitcoin's recent push toward $44,000.
New data from the Crypto Fear & Greed Index indicates that market greed has slowed in the past week, with the current score standing at 65/100. While the mood is still predominantly greedy, the level of heat has cooled, providing a moment for market participants to reflect.
As cryptocurrency markets navigate through a period of uncertainty, analysts recommend keeping a careful eye on emerging market trends and developments in the coming days.
