Bitcoin (BTC) is currently encountering a phase of high volatility, with the maiden cryptocurrency testing levels below $16,000. The asset’s latest price movement has extended a bearish stretch, with investors still looking for a possible bottom hoping Bitcoin can replicate historical trends ahead of the Thanksgiving holiday.
Over the last three years, the holiday has acted as a catalyst for the final episode of Bitcoin’s bull run. In 2021, the asset traded at about $58,927, with gains of over 214% from the 2020 Thanksgiving.
Indeed, during the 2020’s holiday, Bitcoin was valued at $18,764, with gains of over 162% from 2019’s price of $7,150. However, based on various technical analysis indicators, Bitcoin’s Thanksgiving bullish trend will be cut short in 2022, with the asset likely to trade at $16,353, according to CoinCodex.com’s projection.
Bitcoin community remains bullish
As things stand, Bitcoin is heading into this year’s Thanksgiving on downward momentum, having plunged by about 71%, losing its market cap by almost $700 billion since the last turkey dinner
However, the Bitcoin community on CoinMarketCap, leveraging that price estimate feature, projects that ahead of the November 24 holiday, Bitcoin will end the month on a high note, trading at $20,623. The average price projection is based on votes by 24,402 community members.
With the 2022 Thanksgiving sentiment sounding unconvincing, the focus is on whether Bitcoin can defy the bearish environment and embark on a bullish turn. By press time, Bitcoin was trading at $16,200 with daily gains of less than 0.5%.
Bitcoin technical analysis
It is worth noting that Bitcoin’s price correction is directly impacted by the general market sentiment, led by effects from prevailing macroeconomic factors such as rising inflation. At the same time, the asset is still reeling from the impact of the FTX cryptocurrency exchange collapse.
In this line, crypto analyst Mark Moss acknowledged that the 2022 Thanksgiving would be a rough ride for Bitcoin investors. In a tweet on November 22, Moss stated that the focus should be directed away from the price to other onchain metrics like growth and development of the network.
“It’s going to be another tough Thanksgiving for the Bitcoin ers around the table, explaining WHY the USD price is a distraction,” he said.
Although the odds appear against Bitcoin rising year-over-year from the last Thanksgiving holiday, analysts have identified critical levels for the asset to accomplish before exiting the bear market. As reported by Finbold, crypto technical analyst Matthew Hyland pointed out that $20,200 is a crucial level that would potentially allow Bitcoin to embark on a new rally.
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