(Bloomberg) — Bitcoin is continuing its December retreat and testing a key technical level that over the past two years has tended to act as a floor for the world’s largest cryptocurrency.
Most Read from Bloomberg
The digital asset fell as much as 2.7% in Asia on Thursday and was trading at about $46,700 as of 2:15 p.m. in Singapore. It’s down some 18% this month amid a broader retreat in the crypto sector.
Bitcoin’s drop has taken the token to its 55-week moving average, a level it effectively held after a December flash crash and during the mid-year embers of a crypto rout. The technical study suggests a decisive break below the average would put a slide to $40,000 in play.
Bitcoin is an emblem of volatility and a major question heading into 2022 is whether all those gyrations to come will eventually leave it lower rather than higher as the tide of pandemic-era stimulus recedes.
Crypto’s proponents remain undeterred, pointing to trends such as increased interest in the sector from a clutch of financial institutions.
This year “has seen crypto and blockchain mass adoption…
