Bitcoin price traded sideways at around $46,000 and is down about 8% over the past week

Despite the anniversaries, Bitcoin price action remains sluggish. BTC briefly traded below $46,000 after trading near $47,500 midday. At the time of writing, BTC is changing hands at $46,246.

bitcoin-price-traded-sideways-at-around-46000-and-is-down-about-8-over-the-past-week

BTC/USD 4-hour chart | Source: TradingView

Analysts expect Bitcoin price sideways trading

The bullish sentiment seems to be at a low even though bitcoin has marked its 13th birthday. On January 3, 2009, Satoshi Nakamoto mined the first block, the Genesis Block, which marked the beginning of the Bitcoin blockchain.

For now, technical indicators suggest a nearby support zone could encourage short-term buying. However, the long-term momentum has slowed, which could lead to low or negative crypto returns this month. Several analysts are monitoring blockchain data for clues about the future price direction of BTC. For example, net exchange cash flows have increased recently, signaling a bearish shift in investor sentiment similar to that seen before the price crash last May.

“When the crypto community collectively decides it’s time to buy the dip, our data has historically indicated that it is, in fact, NOT the time to buy the dip. In reality, the actual price bounces occur when crowds become fearful and believe prices will keep sliding”, Santiment stated.

believe prices will keep sliding.

Source: Santiment 

Bitcoin price was once trading below $46,000. Its price is also down nearly 3% in the past 24 hours. BTC gets off to a slow start as traders ring in the new year. The cryptocurrency has dropped about 8% in the past week due to slowing demand from buyers. The price is currently around $46,000 near the bottom of a two-week-long price range, which has previously led to higher BTC bids.

It’s pretty much been choppy since that big drop at the beginning of December. Bitcoin has been ranging from $46,000 – $51,000 for a month or so now… most of the major tokens have been following the trend.

The relative strength index (RSI) on the daily chart is rising from an oversold level reached on Dec. 10. This suggests selling pressure is starting to wane, especially as downside exhaustion signals appeared on the daily chart for the first time since July.

BTC will need to return above its 200-day moving average, currently at $47,962, to yield further upside targets. The next level of resistance is seen at around $52,000, which could limit short-term gains. For now, price momentum is slowing ahead of the Asian trading day, as buyers and sellers appear to be in a stalemate.

In another development, ETH has fallen below $3,800, recording a 7% drop in the past 24 hours. “Ethereum is back above $3,760, and the median fee per ETH transaction has remained low, allowing the utility to rise without hesitance from cost-sensitive traders. Average gas in GWEI per transaction has risen, however, so keep a close eye on this”. Santiment stated.

bitcoin-price-traded-sideways-at-around-46000-and-is-down-about-8-over-the-past-week1

Source: Santiment

The overall cryptocurrency market cap stands at $2.209 trillion, and Bitcoin Dominance is 39.6%.

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