Bitcoin
BTC$66 503.40

-0.65%

Ethereum
ETH$3 078.67

-1.28%

Tether
USDT$1.000029

-0.03%

Binance Coin
BNB$573.51

-1.19%

Solana
SOL$170.51

-1.50%

USD Coin
USDC$1.000043

-0.01%

Analysts expect Bitcoin trend change after Fed lays out its 2022 roadmap


16 Dec 2021

#Bitcoin

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. 

There is a solid base of support near $46,500

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.”

Volatility is par for the course

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.”

Echoes of September’s BTC price action

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%.


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Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 84.8% 19 $66 503.40 -0.65% 8.34% $1 310 162 140 242 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 88.4% 20 $3 078.67 -1.28% 5.59% $369 830 375 839 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 95.2% 1 $1.000029 -0.03% 0.04% $111 438 173 122 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 89.6% 6 $573.51 -1.19% -3.22% $84 642 569 477 BNB 7 days price change
5 Solana (SOL) SOL Solana predictions 75.2% 42 $170.51 -1.50% 19.27% $76 556 546 641 SOL 7 days price change
6 USD Coin (USDC) USDC USD Coin predictions 94% 1 $1.000043 -0.01% 0.01% $33 496 798 629 USDC 7 days price change
7 XRP (XRP) XRP XRP predictions 88.8% 8 $0.510333 -2.19% 2.41% $28 215 770 436 XRP 7 days price change
8 Toncoin (TON) TON Toncoin predictions 70.8% 65 $6.28 -2.41% -10.36% $21 813 613 872 TON 7 days price change
9 Dogecoin (DOGE) DOGE Dogecoin predictions 80% 30 $0.149658 -2.79% 6.73% $21 604 956 344 DOGE 7 days price change
10 Cardano (ADA) ADA Cardano predictions 86% 23 $0.465359 -3.02% 6.95% $16 604 076 150 ADA 7 days price change
11 SHIBA INU (SHIB) SHIB SHIBA INU predictions 80.4% 41 $0.000024 -4.04% 7.28% $13 986 369 705 SHIB 7 days price change
12 Avalanche (AVAX) AVAX Avalanche predictions 80% 38 $35.58 -4.98% 8.51% $13 620 879 971 AVAX 7 days price change
13 TRON (TRX) TRX TRON predictions 86% 21 $0.121132 -1.02% -4.68% $10 591 997 443 TRX 7 days price change
14 Wrapped TRON (WTRX) WTRX Wrapped TRON predictions 85.6% 18 $0.121054 -1.15% -4.68% $10 585 118 485 WTRX 7 days price change
15 Wrapped Bitcoin (WBTC) WBTC Wrapped Bitcoin predictions 89.2% 18 $66 386.79 -0.80% 8.28% $10 322 918 427 WBTC 7 days price change

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