Bitcoin (BTC) and the entire cryptocurrency market tumbled today as stock markets negatively echoed the Federal Reserve's December FOMC meeting where they showed the regulator is committed to lowering its balance sheet and raising interest rates in 2022.
With the equity markets correcting, BTC price has followed suit, dropping below $42.500 at the time of publication of this article. The selling force generated a selloff wave that reached $222 million in less than an hour.
Due to the current moment of the Global market, it is widely expected that the Fed start raising its benchmark interest rate in March, "which would mean balance sheet reduction could start before the summer."
BTC needs to recover above $46K
according to Michaël van de Poppe's Cripto analysis, the BTC exited during the last sharp market retraction.
“And the below $46K scenario is taking place in Bitcoin here. The question is, are we hanging here, taking liquidity and crashing above $46K? In that case, the bottom is inside. ”
If the price does not exceed US$46.000, the market could face an extended bear period, which has the potential to see the BTC return to the lower range of US$30.000.
In his Tweet Michaël van de Poppe said:
Simply put, #Bitcoin has lost support, chasing all liquidity, maybe a test in the $42K range and that's it. A longer cycle. Another year of optimistic prospects. The full market capitalization for #crypto is also adequate.
simply put, # Bitcoin lost support, seeking for all the liquidity, maybe a test at $42K range and that should be it.
A longer cycle.
Another year of bullish perspectives.
Total market capitalization for #crypto is fine too.
- Michaël van de Poppe (@CryptoMichNL) January 5, 2022
