Bitcoin fell 0.62% to $48,588 on Wednesday, December 22. Buyers were unable to capitalize on a weaker greenback, higher stocks or gold.
The demand for risk-sensitive assets climbed on the back of Omicron-related news. According to the latest research and preliminary data from South Africa and the universities of Edinburgh and Strathclyde, the new variant appears less likely to land people in the hospital with Covid-19 than the Delta strain. The FDA has approved Pfizer's antiviral COVID-19 pill, making it the first at-home treatment.
On Wednesday, the BTCUSD pair rose to $49,576 during the Asian session. After an unsuccessful attempt to break out of the trendline, which originates from the top of $69k, a downward correction broke out. Selling picked up as the day wore on, with the dollar rapidly declining against peer currencies. It looked as though someone did not want Bitcoin to strengthen.
In Asian trading, price action dropped to $47,920. The decline halted at the 38.2% of the Fibonacci retracement level relative to the rise from $45,559 to $49,576. Resistance shaped up at $49,500, although the upper bound of the sideways range runs through $51,200. The demand for risk-sensitive assets remains high. BTCUSD is trading sideways after dipping lower at $48,438.
US equity and precious metals markets will be closed on Friday. The FX market will see a shortened trading schedule. We expect high volatility in the cryptocurrency market during the holidays. If price action remains below $49,500 on Thursday, sellers will still try to test their strength at the $45,500 and $46,540 levels.