The fallout from the Federal Reserve’s recent hawkish comments about interest rate hikes in March continued to weigh heavily on the crypto market on 6 January. The Crypto Fear & Greed Index has been lowered to 15, and some traders regret the possible start of an expanded bear market.

The Fear and Greed Index of Cryptography. Source: alternative
Data from Cointelegraph Markets Pro and TradingView show that the bears tried to challenge the lowest levels set on 5 January, which led to the price of BTC falling to $ 42,439 at the start of trading on 6 January.

BTC / USDT daily chart. Source: TradingView
Let’s take a quick look at where analysts think the price may go over the next few days.

Bitcoin may fall to $ 38-40K
According to Mike Novogratz, CEO of Galaxy Digital Holdings and a staunch supporter of cryptocurrency, this latest move has been “low key” and highlights the fact that there is “huge institutional demand on the sidelines.”

Regarding whether Novogratz sees current market conditions as a good buying opportunity, an experienced trader told CNBC that he would “wait a little longer to buy the cryptocurrency” and suggested that the market “will be choppy in the coming weeks.”

Novogratz sa:

“Bitcoin can fall from $ 38,000 to $ 40,000.”
BTC is trying to set a higher bottom
A closer look at BTC’s recent price action has been suggested by cryptanalyst and pseudonym Twitter user Rekt Capital, who posted the following chart comparing current market conditions with those seen last time the BTC price fell below a 2-day exponentially moving average. 50 days. … (EMA).

Weekly chart for BTC / USD. Source: Twitter
According to Rekt Captial, “BTC” fell below the blue 50-day exponential moving average “and is now trying to set a new higher low (HL) represented by the dotted green line.

Rekt Capital sa:

“In May 2021, BTC also made a higher (orange) bottom on deviations below 50 EMA. Originally, BTC held HL, but the spread below was also common.”
Based on the pie chart above, Rekt Capital sees the potential for BTC to fall to the $ 40,000 range.

RELATED: Bitcoin price drops below $ 42,000 as order book imbalance goes “crazy”

Bitcoin price in the “gold pocket”
The last part of the analysis that highlights the important context the market is in, was provided by the independent market analyst Scott Melker, who published the following chart showing Bitcoin trading between 0.65 and 0.618 Fibonacci retracement levels.

BTC / USD 1-day chart. Source: Twitter
According to Melker, this series is known as “the golden pocket” and “is considered the most viable place to buy or sell an asset and look for a reversal.”

Melker said:

“The price is currently in the gold pocket with a transition from $ 28,600 to $ 69,000.”
The total market value of cryptocurrency is now 2.077 trillion dollars, and the bitcoin dominance is 39.5%.

Source: CoinTelegraph

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