Bitcoin closed lower on Tuesday, December 28, down 6.23% to $47,543. Price action started to decline during the Asian session and picked up during North American trading against the backdrop of falling stock indices. The decline in BTCUSD stopped when equities turned around and the US dollar weakened. The leading cryptocurrency sank to an intraday low of $47,313.
Markets remain in risk-off mode heading into the end of the year amid thin volumes. There are two incomplete days left until the end of the month and the year. Bitcoin has climbed 61% YTD, while losses have reached 17.8% in December.
Sellers seized the initiative on Tuesday as buyers failed to hold the $47,500-$45,500 zone. All other things being the same by the end of today’s session, BTCUSD risks a decline to $40,750 by mid-January. Interim support is located at $43,200.
According to exchange balances, over 65,000 BTC have been moved to exchanges over the past seven days. An uptick in exchange reserves is generally considered a bearish sign for the market as it is also followed by a surge in selling pressure.