Bitcoin will start at $47,200 in 2022, because new research shows the performance of the outflow of Chinese traders

Bitcoin (Bitcoin) With the end of 2021, the bears lose at the last minute-the consensus around China has once again become the cause of weakness.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

China’s “last hammer” can now bring optimism to BTC

A few hours before the closing of the year, BTC/USD fell by US$2,000 to a low of US$45,630 on Bitstamp, and then a mild recovery was drawn below the line of US$47,200 in 2021. The data comes from Cointelegraph Markets Pro and Transaction view show.

Although a bit anti-climax and far below many popular predictions, Bitcoin’s lack of parabolic upside has recently shifted the explanation to exchanges.

After the government tightened the screw on crypto trading for years, Chinese users had to leave China’s major exchanges before December 31, and these exchanges were forced to cancel their registrations.

For Bobby Lee, the former CEO of the BTCC exchange, this is the “last hammer” in Beijing’s arsenal and may have a considerable impact on sales.

“Perhaps this is why the highly anticipated year-end bull market has not yet taken off,” he said in a statement. Series of tweets About this in early December.

“Waiting for China’s last hammer to fall! It is expected that there will be a slight adjustment after the law enforcement news is released, followed by a gratifying rebound, which may return us to the real Bitcoin bull market.”

Other voices Support theory, And this week, Blockstream also acknowledged the possible pressure to uninstall Chinese users, they may sell their BTC to withdraw funds-leading to Increase in balance.

This is also a potential reason for optimism about the future, as China’s foreign exchange backlog will be cleared from the end of this month.

“I think this may explain why we see that Bitcoin trading volume during the Asian session is generally lower than during the US and European sessions,” Blockstream analyst Jesse Knutson wrote in the company’s latest report. Weekly newsletter.

“This is also a potential reason for optimism about the future, because China’s foreign exchange backlog will be cleared from the end of this month.”

Bitcoin exchange BTC balance chart. Source: Coinglass

Stay calm amidst holiday volatility

In a shorter time frame, light holiday liquidity may be another reason for giving up price drops, as seen on Friday.

related: As GBTC discounts remain near historical lows, the first Bitcoin ETF in the United States will become a “dud” in 2021

Before Wall Street and institutional traders return, the overall price movement of BTC may provide an unreliable impression of the market’s subsequent performance.

2022, this week’s forecast Say, Should see a major “flipping” of Bitcoin ownership, which will benefit large-volume institutional traders and stay away from retail investors.