Experts predict a massive altcoin move in 2022, as BTC and ETH prices rise. Michael van de Poppe said that encouraging signs are being seen across altcoin charts. However, Bitcoin is not surprising with a fall from its 10-day highs.
Market Update
Bitcoin (BTC), which was still in a tight range on December 23, as strong buying activity continued, remained rigidly within that range.
Hodlers busy accumulating
Cointelegraph Markets Pro and TradingView data showed that BTC/USD failed to hold $49,000 at the close of 10-day highs.
The pair was stuck in a trading area of only $4,000, which is a key factor that fuelled bets about a “short squeeze” during the holiday period.
Investors were more confident in the current environment of declining volatility because the data showed that the supply was being purchased at three times the rate of new BTC mined.
Glassnode, an on-chain analytics firm, stated that “Strong-handed HODLers are absorbing supply more than triple the rate new coins are being mined each daily,” in its latest edition of “The Week On-Chain” newsletter.
Glassnode also noted that, at $47,000 spot price, more than one-quarter of BTC supply was under water compared to when it last moved.
As Cointelegraph reported, the likelihood of a squeeze up or down on BTC/USD will likely increase over the new year as decreased activity thins out liquidity and allows for volatility to enter more easily.
#BTC Update ✅#Bitcoin bounced 8%
$46k re-entry after selling $52k & back up to $50kThrowback and S&R flip likely from here.
Only a breakout above $50k would be the significant breakout and LONG entry #midterm in case u missed this bounce (downtrend breakout) pic.twitter.com/eKICOZLza6— AN₿ESSA (@Anbessa100) December 22, 2021
Among traders, $50,000 remained the point to watch for resumption of a more bullish stance.
“Santa rally” comes to XRP as altcoins simmer
Among altcoins, Wednesday’s exuberance was waning, with only two of the top 10 cryptocurrencies by market capitalization still in the green on daily timeframes at the time of writing.
Related: Price analysis 12/22: BTC, ETH, BNB, SOL, ADA, XRP, LUNA, AVAX, DOT, DOGE
The standout was XRP, which maintained weekly gains of over 18% to return to $1 for the first time since the start of December. Ether (ETH) was back below $4,000.
For Cointelegraph contributor Michaël van de Poppe, however, signs were flowing in that a new year’s rebound made buying this week a solid strategy.
“More and more weekly charts are shaping up beautifully on the altcoins,” he told Twitter followers.
“2022 will be massive.”
