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Bitcoin is facing some technical resistance at around USD45'000. The fast rebound in bitcoin is seeing profit-taking as traders seek to lock-in gains or reduce exposure amid the volatility. The key technical level could act as resistance, until the market digest the recent gains. The dip in crypto is reported to have drawn significant interest from institutions with companies including MicroStrategy and KPMG Canada buying recently. 

Bitcoin is trading at USD42'720 this morning, about 22% up from its closing lows on 22nd January. The leading crypto is now testing the upper end of its 20-day bollinger band, that could act as technical resistance, but not necessarily. Traders will be looking for bitcoin to take out USD43'000 next, to suggest continued strength. Strength in crypto is a particularly encouraging early sign of 'risk-on' appetite gaining momentum after a highly volatile start of the year that would have kept many 'would be' buyers on the sidelines. Euro Stoxx 50 are pointing 0.6% higher, and in the US, Nasdaq futures are a modest 0.3% higher.  

Cryptocurrencies across the board are falling amidst broader risk aversion in markets. Bitcoin is trading at USD38'390, down more than 5%, while Ether has lost more than 10%, trading at USD2'790. The negative sentiment is also dragging major crypto stocks, notably, Coinbase, down more than 5% in premarket trading.  This month regulators from numerous countries, including the UK, Spain, Singapore, and Russia displayed intent to toughen the rules on crypto-assets. Although selling pressure seems high, technical studies point to a possible floor around the 35'000 level. Stay tuned!

Bitcoin is breaking below its key support level of USD40'000. The probability of a 1st rate hike in March is priced at almost 100% likelihood, not to mention that analysts at Goldman Sachs expect a total of 4 rate hike just in 2022. As money is becoming scares, cryptocurrencies and many high-multiple stocks are becoming under greater pressure. All major cryptocurrencies are down at least 38% from their highs in 2021. Will the USD40'000 level provide support for the digital "gold 2.0"? 

Bitcoin has retreated this month from close to $57,000 to 46,880 currently. Since December 4th it's continued to trade in a range of $50,800 and $46,200. It's now testing a key technical level that's acted as a floor for the last 2 years. It will be key to see if that level holds entering the new year. If not, on a technical picture it could re-test the level of $40,000. Last time it briefly hit that level on a Saturday, the largest crypto by market cap rebounded quickly. It's expected that institutional interest remains strong entering 2022, which could act as support for the cryptocurrency.