Bitcoin Slides Below $46K As There Are No Safe-Havens Among Leading Cryptos

Bitcoin Retreats Amid Global Market Sell-Off

Bitcoin has recently managed to get below the support level at $46,000 as traders rushed out of riskier assets on fears over the spread of Omicron.

Traders are selling risk across the board. Stocks, commodities and cryptocurrencies are under pressure, while safe-haven U.S. Treasuries enjoy strong support.

While some crypto enthusiasts argued that cryptocurrencies may serve as safe-haven assets at times of uncertainty and protect investors from panic selling in other asset classes, the recent trading action shows that financial markets see cryptocurrencies as one of the most risky asset classes.

The biggest coins, including Bitcoin, Ethereum, Binance Coin and Solana, are moving lower. Meme coins, Dogecoin and Shiba Inu, are under pressure as well. The current pullback is very broad, which shows that traders are not ready to focus on coin-specific catalysts and sell leading cryptocurrencies as a group.

Bitcoin Will Likely Gain Additional Downside Momentum If It Settles Below $45,500

Bitcoin managed to get below the support level at $46,200 and is trying to settle below the next support which is located at $45,500. RSI remains in the moderate territory, so there is enough room to develop additional downside momentum in case the global market sell-off intensifies.

In case Bitcoin moves below $45,500, it will head towards the support level at $44,700. A successful test of this level will push Bitcoin towards the support near $43,300. If Bitcoin declines below this level, it will head towards the support which is located at the lows of the major sell-off at the beginning of December near $42,300.

On the upside, Bitcoin needs to get back above $46,200 to have a chance to develop sustainable upside momentum in the near term. It should be noted that Bitcoin is moving lower in a downside channel, so it will need to get out of this channel to break the current trend. In case Bitcoin moves above the 20 EMA at $49,600, bulls will have a great chance to push Bitcoin back above the psychologically important $50,000 level.

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