Bitcoin (BTC) consolidated above $ 42,000 ahead of Wall Street’s January 7 opening hour, showing a lot in common with last year’s lows.

BTC / USD 1-hour light chart (bit mark). Source: TradingView
BTC mimics May’s behavior “very accurately”
Data from Cointelegraph Markets Pro and TradingView has been tracking the nervous bitcoin market as BTC / USD escaped a new test of support at the $ 40K level.

Earlier, after a short-term fall below $ 41,000, analysts warned of the possibility of another surrender, as a result of which the pair could fall to $ 30,000 or even lower.

This figure is correct for market participants after it formed the basis of a long surrender that lasted from May to July last year.

Then as now, the mining revolution, coupled with macroeconomic factors, temporarily weakened the momentum of the bitcoin beef market.

“BTC is following May 2021 closely,” a trader and analyst at Rekt Capital noted in a series of tweets about the current price movement.

He noted that as of Friday, BTC / USD has broken through the 50-week exponential moving average (EMA) – just like the move in mid-July that marked the bottom of this surrender phase. The 50-week EMA was generating $ 45,000 a day.

Meanwhile, Cointelegraph contributor Michael van de Poppe pointed out the differences between the two phases.

The “quick correction to the south” this time means that continued sideways movement and upward breakouts from 2021 will generally not affect the current market.

“The $ 46,000 level is still very important to see,” he said in his latest YouTube update. “If it breaks, I think the entire bear market is over or the correction is completely over and we are considering a possible rally.”

Ethereum trader plans to buy $ 2,200
Altcoins also experienced problems during the day following warnings that any strong moves in the past were likely a red flag – a bull trap.

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Ether (ETH), the largest altcoin by market cap, is trading 4.5% at time of writing to nearly $ 3,000, down $ 700 in a week.

1-day light chart of ETH / USD (bit mark). Source: TradingView
Some of the top 10 cryptocurrencies by market cap have escaped the plunge: Cardano (ADA) rallied 1.2% to $ 1.23 and Ripple (XRP) has stabilized.

Still very wary, Pentoshi has set a $ 2,200 low for his ETH purchases and expects it to reach “sometime this year.”

Source: CoinTelegraph