Traders look for a market-wide recovery now that the Fed confirmed at least three rate hikes and a wind-down of its bond purchasing policy in 2022. The year-long calls for a $100,000 Bitcoin (BTC) price have fallen to the wayside since the asset struck a new all-time high at $69,000, but traders are not completely dismayed. At the moment, most analysts view the current price range as an optimal accumulation zone.
For the past week, markets had been a bit rocky as investors across the globe grew increasingly nervous about Dec. 15's Federal Open Market Committee meeting, but confirmation that the Federal Reserve would enact three rate hikes and gradual tapering in 2022 appears to have been priced into last week's market volatility.
Data from Cointelegraph Markets Pro and TradingView shows that the price of BTC continues to trade above the $47,000 support and after Chairman Powell's statement, the price rose about 0.55% to trade at $49,000. Here’s a look at what market analysts expect from BTC price now that the Fed's policy intentions for 2022 were clarified.
A more detailed analysis of the recent price action was offered by options trader and pseudonymous Twitter user John Wick, who posted the following chart highlighting the bullish and bearish reversals that have occurred over the past two weeks. According to Wick, the recent price action from BTC has established “a solid base support,” which is represented by the yellow horizontal line at $46,588, which is structurally “called a stage 1 base.”
Wick said, “We can expect volatility to build up as well. The next setup I am targeting is an upcoming squeeze. This may turn out just like July did after we based in a stage 1 support. Next stage is fire.”
Compared to historical price action after all-time highs, the current volatility seen in the market is nothing to fret about, according to independent market analyst Rekt Capital who tweeted that the market showed similar drawdowns in previous bull markets only to storm higher after the fear dissipated. Trader and pseudonymous Twitter user Crypto Ed_NL likewise sees a bounce coming in the future and he posted the following chart outlining how the price action could play out in the next few weeks.
Crypto Ed_NL said, “Expectations for the coming hours: 1 more leg down pre FOMC into the green boxes, a bounce after FOMC, continuation of the bull run.”
A final bit of perspective was offered by crypto investor and pseudonymous Twitter user Crypto Bull God, who posted the following chart comparing the current price action for BTC with how it performed in September before going on a bullish breakout.
The analyst said, “Been staring at this the past few days. Not saying this will happen, but I certainly see a similarity now as compared to back in Sept. of this year.”
While no one can know for certain how things will play out as 2021 comes to a close, a possible sign that BTC could close out the year strong was pointed out in the following tweet by Cointelegraph contributor Michaël van de Poppe. The overall cryptocurrency market cap now stands at $2.152 trillion and Bitcoin’s dominance rate is 41.6%.
|#||Crypto||Prediction||Accuracy||CVIX||Price||24h||7d||Market Cap||7d price change|
|1||BTC||Bitcoin predictions||71.2%||61||$41 312.94||-1.79%||-2.97%||$782 208 393 376|
|2||ETH||Ethereum predictions||64.4%||76||$3 057.90||-4.13%||-4.99%||$364 557 204 266|
|3||USDT||Tether predictions||96%||1||$1.000957||0.03%||0.07%||$78 389 539 616|
|4||BNB||Binance Coin predictions||70%||60||$454.95||-4.03%||-0.74%||$75 119 228 033|
|5||ADA||Cardano predictions||76%||52||$1.37||-11.53%||13.83%||$45 869 836 376|
|6||USDC||USD Coin predictions||96%||1||$0.999548||-0.04%||-0.05%||$45 742 193 035|
|7||SOL||Solana predictions||62.8%||81||$134.45||-3.98%||-3.06%||$42 237 959 711|
|8||XRP||XRP predictions||69.2%||65||$0.728701||-3.80%||-4.17%||$34 732 162 139|
|9||LUNA||Terra predictions||74%||57||$76.09||-1.12%||0.67%||$27 219 693 512|
|10||DOT||Polkadot predictions||73.2%||51||$23.84||-5.97%||-7.36%||$23 544 579 275|
|11||DOGE||Dogecoin predictions||75.2%||45||$0.160728||-5.76%||5.59%||$21 323 857 260|
|12||AVAX||Avalanche predictions||61.2%||79||$81.61||-6.07%||-9.81%||$19 942 092 907|
|13||SHIB||SHIBA INU predictions||70%||63||$0.000027||-4.93%||-3.67%||$15 025 615 032|
|14||MATIC||Polygon predictions||68.4%||59||$2.02||-8.18%||-12.60%||$14 789 690 265|
|15||BUSD||Binance USD predictions||90.8%||1||$0.999731||-0.10%||-0.13%||$14 211 573 940|
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