Bitcoin price drops to $ 43.7,000 after Fed minutes reconfirmed rate hike plans

Bitcoin ( BTC ) and the broader cryptocurrency market collapsed as equity markets pulled back at the closing bell after minutes from the ...

Bitcoin (BTC) and the broader cryptocurrency market collapsed as equity markets pulled back at the closing bell after minutes from the Federal Reserve’s FOMC meeting in December showed the regulator was is committed to reducing its balance sheet and raising interest rates in 2022.

As the stock markets corrected, the price of BTC followed suit, falling below $ 44,000, triggering a cascade of sell-offs that reached $ 222 million in less than an hour.

Total liquidations. Source: Coinglass

Data Cointelegraph Markets Pro and TradingView shows that after hovering around the support at $ 46,000 for the past two days, Bitcoin was hit by a selling wave that took the price down to an intraday low of $ 43,717.

4 hour BTC / USDT chart. Source: TradingView

Based on the current situation, it is widely expected that the Fed will start breeding its benchmark interest rate in March, “which would mean that the reduction in the balance sheet could begin before the summer”.

Here’s a look at what crypto analysts are saying about the latest Bitcoin price drop in BTC and what could be in store in the weeks to come as the Fed’s easy monetary policies end and rates go down. interest is starting to increase.

Capitulation looms below $ 44,000

A foreshadowing of the January 5 withdrawal was offered by crypto analyst and pseudonymous Twitter user Rekt Capital who job the following graph highlighting the “many similarities between this BTC range and May 2021”.

1 week BTC / USD chart. Source: Twitter

Rekt Capital said,

“Both saw BTC consolidate into two bull market EMAs (ie a 21 week green EMA and a 50 week blue EMA). If BTC is to repeat history, a capitulation event could take place where BTC briefly deviates below the blue 50 EMA.

BTC must recover $ 46,000

Cointelegraph analyst and contributor Michaƫl van de Poppe, who job the following chart detailing how BTC performed during the last sharp decline in the market.

4 hour BTC / USDT chart. Source: Twitter

van de Poppe said,

“And the scenario of falling below $ 46,000 is playing out here on Bitcoin. The question is, are we going to stay here, take the liquidity and come back above $ 46,000? In this case, the bottom is in.

If the price does not move back above $ 46,000, the market could experience a prolonged bearish period that could potentially see BTC return to the low range of $ 30,000.

Related: President Biden considers economists to take Fed seats as leadership appointments move to Senate: report

The scenario the market is currently facing has been succinctly addressed in the following chart posted by options trader and pseudonymous Twitter user Nunya Bizniz.

BTC price against RSI. Source: Twitter

Nunya Bizniz said,

“Monthly BTC: Dips below the current RSI level have been ugly. This time?”

The overall cryptocurrency market cap is now $ 2.123 trillion and Bitcoin’s dominance rate is 39.4%.

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.