Christmas already for the bears – The week will not be easy for the bulls who leave with a handicap with the announcements of the Federal Reserve which should spike the bears. Traders continue to trust bitcoin (BTC) despite breaking major support, as if any declines are ultimately just a staple before the next bullish rally.
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Bitcoin under $ 47,000: another blow from the Fed and its tapering
Bitcoin closes yesterday, December 12, 2021, above $ 50,000. However, he starts the week with a huge red daily candlestick. Bitcoin is trading at $ 46,649 on Bitfinex at the time of writing, and is currently recording a significant daily loss of 7.16%.
Bitcoin is under strong bearish pressure as the week sees discussions by the Federal Open Market Committee, with the threat of an acceleration in tapering of the US Federal Reserve, which weighs on the price of risky assets. Tapering is the gradual reduction in the quantitative easing policy carried out by the Fed, with a decrease in its asset purchases over time. The FED could also announce at the end of the meetings of 14-15 December 2021, an interest rate hike in 2022.
A recent report from Delphi Digital highlights the negative effects of the last meeting of the Federal Open Market Committee on the price of bitcoin:
“BTC has been among the worst performing assets relative to traditional asset classes since the November FOMC meeting, losing nearly 20% of its value over the past month. “
Bitcoin price collapse: nothing abnormal at these levels
Traders remain optimistic and reassure the markets despite this strongly bearish start to the week. Trader Michael van de Poppe expects a bullish reversal below $ 46,500 :
“It seems to me that we are looking for a bullish divergence to create below the $ 46.5K area in order to have a possible reversal. “
Trader Rekt Capital meanwhile shared a chart showing bitcoin’s price falling below a weekly support area. He notably indicated that this bearish breakout has already taken place several times in the past, and that “ there is nothing exceptional about this type of downward volatility at these price levels ».
Will the Fed succeed in pushing bitcoin below its previous low of $ 42,000? In a downturn, and until analysts agree that bitcoin has entered a bearish cycle, the question of the appropriateness of buying current lows still remains relevant.
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