The volatility in the crypto market over recent weeks has been very concerning for Bitcoin’s (BTC )) bulls. Although there was a slight increase in BTC prices following the FOMC meeting of the US Fed, the overall trend is still bearish. We don’t expect this to change; in fact, 2021 could end on a choppy note, backing a bear trend that we have seen for nearly the whole of Q4. This is why it will happen:

• Pandemic fears remain ripe due to the widespread spread of Omicron

• The supply chain crisis in the US and Europe continues to be high and could pose a threat to global economic recovery

• There are talks of possible regulation in many countries

Data Source: Tradingview.com

Bitcoin Price Analysis and Prediction

BTC experienced a huge pullback this week. At the time of writing this post, the mega-cap coin was trading slightly above $45 000. It is nearly 30% down from its all-time high of slightly above $ 70 000. The technical charts are not very promising, at least until next year.

First, the price has already fallen below the 200-day exponential moving average. It is also very likely that in the coming days, BTC prices will test the 200-day simple moving average. We saw this type of trend in May 2021, and it took nearly 2 months for BTC to have some semblance of recovery. This rate could make it very difficult for BTC bulls.

Should You Buy Bitcoin

Bitcoin should be the first choice for investors. It may appear that the recent pullback gives investors a chance to take advantage of the rising trend and buy bitcoins. However, it is still early days. BTC could fall further before 2021 is out and some experts feel that the trend will continue into early 2022. It is better to wait until now.