Bitcoin fell below $50,000 Tuesday even as analysts consider $50,000 a critical, pivotal level for Bitcoin to assess its outlook for 2022.
The crypto-token fell by 4.5% to trade at $49,100 at 1.10 p.m. in Singapore. The other coins like the second-largest crypto Ether and Bloomberg Galaxy Crypto index were also in the red zone.
As per Bloomberg News, investors have been recently retreating from the speculative corners of the world markets, worried about reducing central bank stimulus. They are unsure how Bitcoin and the larger Crypto universe are exposed to the risk amidst heated debate.
Vijay Ayyar, who is corporate development and international vice president at Luno, the crypto exchange in Singapore, feels that overall, there is nothing much to worry about at this point regarding Bitcoin prices. The digital coin will continue to remain bullish in its outlook if it manages to stay above the $48000 to $49000 levels.
The technical charts suggest a tipping point for Bitcoin after it reached an all-time high of $69,000 in November to retreat to present levels. The gains since then have trimmed to about 70% on a year-to-year basis.
The Bollinger Bands on the technical chart showed that Bitcoin touched the upper band in the previous week but failed to cross it. The study of the Bollinger band is an excellent way to study volatility. The trend shows that bitcoin may have difficulty making gains on a short-term basis.
Smaller coins like Polka dot, Cardano, Solana, and the meme coin Dogecoin also lost value on Tuesday as per the crypto tracker CoinGecko.
