After the Federal Reserve meeting minutes reconfirmed the interest rate hike plan, the Bitcoin price fell to $43,700

Bitcoin (Bitcoin) And the broader cryptocurrency market fell because the stock market fell at the close after the minutes of the Federal Reserve’s December FOMC meeting showed that the regulator was committed to shrinking its balance sheet and raising interest rates in 2022.

As the stock market adjusted, the price of BTC also fell below US$44,000, triggering a series of liquidations, reaching US$222 million in less than an hour.

Data from Cointelegraph Markets Pro and Transaction view It shows that after oscillating around the support level of $46,000 in the past few days, Bitcoin was hit by a wave of selling, which pulled the price down to an intraday low of $43,717.

Based on the current situation, the market generally expects that the Fed will start improve Its benchmark interest rate was in March, “which means that the balance sheet reduction may begin before the summer.”

Here is what cryptocurrency analysts think about the latest Bitcoin price drop in BTC and what might happen in the coming weeks as the Fed’s loose monetary policy ends and interest rates begin to rise.

Surrender price is less than $44,000

Cryptocurrency analyst and pseudonymous Twitter user Rekt Capital provided the harbinger of a pullback on January 5. Post The chart below highlights “many similarities between this BTC range and May 2021”.

Rekt Capital said,

“Both have seen BTC consolidate within two bull market EMAs (ie green 21-week and blue 50-week EMA). If BTC repeats its historical mistakes, a surrender event may occur, that is, BTC briefly deviates below the blue 50 EMA .”

BTC needs to recover USD 46,000

Analyst and Cointelegraph contributor Michaël van de Poppe conducted a more in-depth study of price movements in May. He Post The chart below details BTC’s performance during the last sharp market correction.

The pope said,

“Bitcoin here is falling below $46,000. The question becomes, will we stay here, gain liquidity and break through $46,000 again? In that case, the bottom is.”

If the price does not rebound above US$46,000, the market may enter a longer bear market period, and it is possible to see BTC fall back to the low range of US$30,000.

related: With the leadership nomination moved to the Senate, President Biden is considering letting economists fill seats in the Fed: report

The following table released by option trader and pseudonym Twitter user Nunya Bizniz provides a brief description of the current market situation.

Nunya Bizniz said,

“BTC Monthly: It’s bad to fall below the current RSI level. This time?”

The overall market value of cryptocurrencies is now $2.123 trillion, and Bitcoin’s dominance rate is 39.4%.

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