Bitcoin (BTC) the bulls are once again on the defensive after the breakout momentum that put the price above $ 50,000 at the weekend. evaporated and dumped 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 with some suggesting that a revision to the $ 42,000 low could be in the low spots. cards.
Here's a look at what analysts are saying about the current Bitcoin price action and what they expect in the near term.
Fed's phase-down talks put pressure on the market
The current headwinds facing BTC are largely influenced by regulatory issues in the United States, as highlighted in a recent Delphi Digital report, which noted that "the latest adjustment by global lawmakers and the reduction in The Fed has already caused markets to re-price. "
Delphi Digital said:
"BTC is among one of the worst performing assets compared to traditional asset classes since the November FOMC meeting, losing nearly 20% of its value over the last month."
While this latest recession is testing the will of many traders who are hoping this is just another jolt before the price rises, cryptocurrency analyst and pseudonymous Twitter user CryptoCapo offered some hope afterward. destination The following graph compares the current price action with the price drop that was observed in September.
CryptoCapo said:
“These two fixes are very similar. The same 3-wave movement pattern. Same background formation (3 touches). Same financing + negative rate premiums. Same bearish divergence hidden before last leg down. "
Looking for a bullish divergence below $ 46,500
Cointelegraph analyst and contributor Michaël van de Poppe offered more insight into BTC's price action. aware The graph below notes that the "market is falling as resistance in Bitcoin is rejected".
Poppe said:
"It seems to me that we are looking for a bullish divergence to be created below the $ 46.5K area to have a possible reversal."
Related: 'Monster Bull Move' Means Whales Could Secure Next Bitcoin Price Rise
This price action is "nothing out of the ordinary."
Market analyst and pseudonymous Twitter user Rekt Capital provided a final word of reassurance. aware the chart below and noted that "BTC's downside absorption below the red weekly support area has occurred many times in the past (orange circles)."
Rekt Capital indicated that this recent drop is part of the course and nothing to worry about too much in the long run.
He said,
"This kind of downward volatility at these price levels is nothing out of the ordinary."
The overall cryptocurrency market capitalization is now $ 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 Cointelegraph.com. Every investment and business move involves risk, you should do your own research when making a decision.
Post navigation
