Institutional tax-loss harvesting weighs on the Bitcoin price as 2021 comes to a close

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Institutional tax-loss harvesting weighs on the Bitcoin price as 2021 comes to a close

BTC price retests the recent lows at $46,000 as institutions appear to be “selling for tax reasons” while $52,000 remains a major hurdle in the path higher.

Institutional tax-loss harvesting weighs on the Bitcoin price as 2021 comes to a close

2021 has been a breakout year for the cryptocurrency market as a whole despite the year-end struggles that have kept the price of Bitcoin (BTC) pinned below $48,000, much to the chagrin of the cadre of folks who had been calling for a $100,000 BTC moonshot. 

Data from Cointelegraph Markets Pro and TradingView shows that the past 24 hours have been a rollercoaster ride for the top cryptocurrency after a brief dip below $46,000 in the early trading hours on Dec. 30 was quickly bought up to push the BTC price back above $47,500 by midday.

Institutional tax-loss harvesting weighs on the Bitcoin price as 2021 comes to a close

BTC/USDT 4-hour chart. Source: TradingView

Here’s a look at what several analysts in the market are saying about the year-end price action for Bitcoin and what to expect in 2022 as the mass adoption of blockchain technology and cryptocurrencies continues to unfold.

Major resistance flips to support

Analysis of Bitcoin price action on the monthly chart was discussed by market analyst and pseudonymous Twitter user ‘Rekt Capital,’ who posted the following chart highlighting how BTC has flipped a major resistance zone into support:

BTC/USD 1-week chart. Source: Twitter

According to Rekt Capital, “BTC has turned the February, August, and September resistance into new support this month” and is looking for a monthly candle close above the green zone shown in the chart above to confirm this as a new support level.

Regarding levels to watch in the days ahead, Rekt Capital is keeping an eye on the $48,500 price level as a gauge for the overall strength of BTC. The analyst said:

The overall cryptocurrency market cap now stands at $2.237 trillion and Bitcoin’s dominance rate is 40.4%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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