Bitcoin Price Dips Below $ 47,000 As Stocks, Crypto Prepare For This Week's FOMC Meeting

Bitcoin ( BTC ) the bulls are on the defensive again after the breaking momentum that put the price above $ 50,000 this weekend evaporate...

Bitcoin (BTC) the bulls are on the defensive again after the breaking momentum that put the price above $ 50,000 this weekend evaporated and dropped the price below $ 47,000. Analysts say the slight pullback in equity markets and the upcoming Federal Open Market Committee (FOMC) meeting are the main reasons for the Dec. 13 pullback and a few suggest a return to the low at $ 42,000 could be considered .

4 hour BTC / USDT chart. Source: TradingView

Here’s a look at what analysts are saying about the current Bitcoin price development and what they expect in the near term.

Fed tapering talks put pressure on the market

The headwinds BTC currently faces are largely influenced by regulatory issues in the United States, as a recent report from Delphi Digital notes, which notes that “the latest tightening of global policymakers and reducing the Fed have already brought about a revision of market prices ”.

Delphi Digital said,

“BTC has been among the worst performing assets relative to traditional asset classes since the November FOMC meeting, losing nearly 20% of its value in the last month.”

As this latest slowdown tests the will of many traders who are hoping this is just another upheaval before the price skyrockets, the cryptocurrency analyst and pseudonymous user of Twitter CryptoCapo offered some hope after assignment the following chart comparing the current price action to the price decline seen in September.

4 hour BTC / USD chart. Source: Twitter

CryptoCapo said,

“These two fixes are very similar. Same 3 wave movement pattern. Same background formation (3 touches). Same financing + negative premium rates. Same bearish divergence hidden before the last step down.

Looking for a bullish divergence below $ 46,500

Cointelegraph analyst and contributor MichaĆ«l van de Poppe, who job the following chart noting that “the market is down as resistances are rejected on Bitcoin”.

3 hour BTC / USD chart. Source: Twitter

Poppe said,

“It looks to me like we are looking to create a bullish divergence below the $ 46.5,000 area in order to have a possible reversal.”

Related: Monster Bull Move Means Whales Could Secure Next Bitcoin Price Hike

This price action is “nothing extraordinary”

A final word of comfort was provided by market analyst and pseudonymous Twitter user Rekt Capital, who job the following chart and noted that “the reduction in the decline of BTC below the red weekly support zone has occurred several times in the past (orange circles). “

1 week BTC / USD chart. Source: Twitter

Rekt Capital has indicated that this recent drop is normal and that there is nothing to worry about in the long term.

He said,

“This kind of downward volatility at these price points is nothing out of the ordinary.”

The overall cryptocurrency market capitalization now stands at $ 2,152 trillion and Bitcoin’s dominance rate is 41.5%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move comes with risk, you should do your own research before making a decision.