Bitcoin (BTC) and the broader cryptocurrency market fell as stock markets fell to close minutes after the Federal Open Market Committee meeting in December showed that the regulator intends to cut the balance sheet and raise interest rates in 2022.

After the stock markets corrected, BTC fell below $ 44,000, triggering a series of liquidations that reached $ 222 million in less than an hour.

Total filter. Source: Coinglass
Data from Cointelegraph Markets Pro and TradingView show that after hovering around the support of $ 46,000 in recent days, Bitcoin experienced a sale that pushed the price to a low level of $ 43,717 during the day.

4 hour BTC / USDT chart. Source: TradingView
Based on the current situation, many expect the Fed to start raising the benchmark rate in March, “which means that the balance sheet contraction may start before the summer.”

Here’s what cryptanalysts are saying about the recent fall in BTC’s price and what may happen in the coming weeks when the Fed’s simple money policy ends and interest rates begin to rise.

Surrender is under $ 44,000
Cryptoanalyst and Twitter user Rekt Capital predicted a decline on January 5, which released the following chart highlighting “many similarities between this BTC series and May 2021.”

Weekly chart for BTC / USD. Source: Twitter
Rekt Capital sa:

In both cases, BTC has merged into two bull market EMAs (ie the green 21-week EMA and the blue 50-week EMA). 50 EMA. ”
BTC $ 46,000 must be returned
Analyst and Cointelegraph contributor Michael van de Poppe took a more detailed look at the price action in May, which published the following chart describing how Bitcoin performed during the recent sharp decline in the market.

4 hour BTC / USDT chart. Source: Twitter
Van de Poppe says:

And here’s a scenario that goes below $ 46K. The question that arises is will we hang here and take the liquidity and return more than 46 thousand dollars? In this case, the bottom is on the inside. ”
If the price does not exceed $ 46,000, the market may endure a longer period of decline, which could lead to a decline in BTC to the lower $ 30,000 range.

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The scenario the market is currently facing is summarized in the following chart, which was posted by options trader and Twitter user under the pseudonym Nunei Bizniz.

BTC price against RSI. Source: Twitter
Nonya Busneys sa:

“Bitcoin monthly: Falling below current RSI level was scary. This time?”
The total market value of cryptocurrency is now $ 2.123 trillion, with Bitcoin dominance of 39.4%.

Source: CoinTelegraph