Bitcoin (BTC/USD) Prices Test Resistance, Risk Sentiment Bolsters Gains

Bitcoin (BTC/USD) Prices Test Resistance, Risk Sentiment Bolsters Gains

Bitcoin prices have edged slightly higher as a culmination of factors boost the demand for riskier assets. Over the past month, fears over the rapid spread of the Omicron variant, regulatory concerns and rising inflation have weighed on the industry, allowing bears to dominate the systemic, prominent trend. However, after falling by approximately 30% since the November all-time high, failure to break below $44, 000 has allowed bulls to temporarily find support above the $48, 000 handle. As the safe-haven Dollar continues to remain under pressure, positive economic data and calming fears surrounding the new variant has allowed stocks and crypto's to limit further losses, raising the prospect of a delayed 'Santa Claus' rally. Visit DailyFX education to learn more about technical and fundamental analysis Due to supply constraints, energy prices have continued to surge, proving to be a contributing factor to the rise in inflation. However, as major central banks such as the ECB (European Central Bank) , the Fed ( US Federal Reserve) and the BoE (Bank of England) prepare to tackle inflation , both technical and fundamental factors may further assist in the catalyzation of price action for the imminent move. Trading Strategies and Risk Management Over