Bitcoin (BTC) recovered from fresh lows on Dec. 30 as markets remained undecided on their end-of-year trajectory.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

$46,000 may not mark floor

Information from Cointelegraph Markets Pro and TradingView showed BTC/USD bouncing to $47,731 on Bitstamp, reversing almost all of the previous twenty-four hour period's losses.

Prior to the Wall St. open, the pair was still higher up the $47,000 mark, every bit traders nonetheless warned that choppy BTC price action was non yet over.

"Pretty dull markets lately. Just a process of bottoming out for Bitcoin," Cointelegraph contributor Michaël van de Poppe summarized.

"We're retesting $46K every bit support, bounced, just we might need to have the liquidity below the lows before nosotros're going to make some upwards runs again."

That liquidity lay between $44,000 and $45,000 on the solar day, with Bitcoin having firmly reestablished its range bounded by resistance at $53,000 and above earlier in the week.

Confronting a low-liquidity holiday backdrop, the potential for sharp moves upward or downward remained.

"Alongside an elevated possibility of a leverage squeeze, we also have a full general turn down in trading volume," on-chain analytics house Glassnode noted in the latest edition of its weekly newsletter, The Calendar week Onchain.

"Quieter trading activity is typical towards yr's end, however, on a 7-24-hour interval average basis, futures marketplace volumes have seen a YTD decline of 16%. Thinner volume and rise open interest (in a concentrated commutation) is a combination that tin be favorable to at least a localized leverage clasp over the coming weeks."

That squeeze, veteran trader Peter Brandt argued this calendar week, is all the same to happen.

Non all quiet amid traders

As Cointelegraph reported, it was macro markets were making the headlines afterwards Christmas with fresh, if dubious, all-time highs.

Related: Bitcoin 'died' 45 times in 2022 as media nonetheless eager to postal service BTC obituaries

At the aforementioned fourth dimension, institutional interest in Bitcoin appears insufficiently low, characterized by the underwhelming performance of the U.S.'s first Bitcoin futures exchange-traded fund (ETF).

"Total open involvement in futures has most doubled this twelvemonth, rising by $9.57B (97%) to a full of $xviii.87B. This week alone has seen an increase of some $ii.5B in open interest, primarily led by traders on Binance," Glassnode nonetheless observed.

Bitcoin futures open involvement chart. Source: Coinglass

Binance's BTC remainder increased throughout December, this potentially existence due to migrating Chinese users from Huobi Global.