As the price of Bitcoin hovers simply round $43,000, the cryptocurrency group is buzzing with expectation. This is because of the sideways price motion following Federal Reserve dedication to lower stability sheet.
Bitcoin and Crypto Market Crash
The price of bitcoin fell beneath $44,000 shortly after the Federal Reserve’s December FOMC assembly notes re-confirmed efforts to control the stability sheet.
After minutes from the Federal Reserve’s December FOMC assembly revealed that the regulator is devoted to decreasing its stability sheet and mountaineering rates of interest in 2022, Bitcoin (BTC) and the broader cryptocurrency market plummeted as inventory markets pulled again on the closing bell.
BTC’s price dropped to $43,000 as inventory markets corrected. This triggered a wave of liquidations that totaled $222 million in lower than an hour.
The market in massacre. Source: Coin360
According to TradingView knowledge, Bitcoin was struck by a wave of promoting that pushed the price to an intraday low of $43,717 after bouncing round help close to $46,000 for a number of days.
BTC/USD Crash to $43k. Source: TradingView
It is anticipated that the Fed will start elevating its benchmark rate of interest in March, “which would mean that balance sheet reduction could start before summer.”
Related article | Altcoin Underdogs Outperform Bitcoin To Kick Off 2022
Rekt Capital Foreshadows Similarities
The chart beneath was posted by crypto analyst and pseudonymous Rekt Capital, exhibiting the “many similarities between this BTC range and May 2021.”
BTC/USD 1-week chart. Source: Twitter
According to Rekt Capital,
“Both saw BTC consolidate inside two Bull Market EMAs (i.e., green 21-week & blue 50-week EMA). If BTC is to repeat history, a capitulation event could take place where BTC briefly deviates below the blue 50 EMA.”
If the price doesn’t break again over $46,000, the market could also be in for a protracted bear market. BTC could retrace to the low $30,000 area.
The Securities and Exchange Commission (SEC) of the United States postponed its determination on NYDIG’s spot bitcoin exchange-traded fund by 60 days on Tuesday (ETF). The delay led to a unfavorable sentiment within the crypto markets, with a number of tokens experiencing a fast sell-off following the announcement.
Related Reading | Bitcoin Open Interest Reaches Dangerously High Values, Leverage Flush Coming?
Featured picture from Unsplash.com, charts from TradingView.com, Coin360