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Bitcoin loses more ground and December is becoming the worst month since May

  • Bitcoin has fallen again and is trading below $ 47,000 at press time, after falling 5% in the last day.
  • While December is preparing to be the worst month since May, most technical indicators are bullish, including portfolio addresses with a zero balance.

As the world celebrates the holidays and the end of a nice year, Bitcoin has a whole different story. The cryptocurrency is in the red again today, spending close to 5 percent to trade below $ 47,000. If the trend continues, December is the worst month since Bitcoin in May.

At press time, BTC was trading at $ 46,900, down 4.78% on the last day. Its market capitalization has fallen below $ 1 trillion, now at $ 887 billion.

December is coming to an end with a good year for Bitcoin. The cryptocurrency this month started trading at more than $ 58,500. At its current price, it is down 19% this month. This is the worst drop since May, when BTC fell after hitting a high of more than $ 64,000.

Crypto is in the Christmas doldrums

Strategies believe that this is a temporary year – end uncertainty that will easily overwhelm Bitcoin. Jeffrey Halley, Senior Market Analyst at OANDA, said:

I suspect squaring account at the end of the year under poor market conditions surpassed the range. It does not imply that Bitcoin has recently threatened between $ 45,000 and $ 52,000.

Mati Greenspan, a well-known cryptocurrency analyst who worked at eToro, agrees. Mati, who now runs her own money management company called Quantum Economics, said, «I’m going to seize the opportunity and classify this as a low – volume buffer in the holiday season.»

The fundamentals of Bitcoin are still as strong as ever

Despite the slippage, the fundamentals of Bitcoin are still as strong as ever. Its trading volume has steadily reached around $ 30 billion, even during the days when its price fell sharply.

And according to data from BTC analysts at On-Chain College, the number of positive leads has been growing steadily since the middle of this year. In June, the positive addresses (referring to the addresses whose balance is greater than zero) were about 30 million, but today, they are more than 40 million.

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Between July and November 1, the new addresses generated were quite low. In November, however, this figure rose to 913,000 new non-zero addresses.

When the number of positive leads increases, it indicates that new investors are entering the BTC ecosystem and existing investors are adding to their positions. When the number goes down, it suggests that investors are selling their BTC. This is usually followed by a downward spiral in the price of Bitcoin.

However, there are also some worrying indicators. Most importantly, BTC’s continued entry into exchanges. This usually means that investors want to make money and often fall in price. In contrast, Ethereum’s outflows are on the rise, indicating that investors have more confidence in the major altcoin than in Bitcoin.

Read also: Arcane Research Predicts Bitcoin (BTC) will outperform S&P 500 next year

Jean Simmons

Jean Simmons has been a cryptocurrency enthusiast since 2014 and has been dedicated to the topic on a daily basis since she first learned about Bitcoin and blockchain technology. Besides cryptocurrency, Jean studied computer science and worked for two years at a blockchain startup. At Mercayala, he is responsible for technical issues. His goal is to bring cryptocurrencies to the world in a simple and understandable way.

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