Bitcoin price drops to $43.7K after Fed minutes re-confirm plans to hike rates

Bitcoin (BTC) and the wider cryptocurrency marketplace fell nether arsenic equities markets pulled backmost astatine the closing doorbell aft minutes from the Federal Reserve's December FOMC gathering showed that the regulator is committed to decreasing its equilibrium expanse and expanding involvement rates successful 2022.

As banal markets corrected, BTC terms followed suit by dropping beneath $44,000, mounting disconnected a cascade of liquidations that reached $222 cardinal successful little than an hour. 

Total liquidations. Source: Coinglass

Data from Cointelegraph Markets Pro and TradingView shows that aft oscillating astir enactment astatine $46,000 for the past mates of days, Bitcoin was deed with a question of selling that pulled the terms to an intraday debased of $43,717.

BTC/USDT 4-hour chart. Source: TradingView

Based connected the existent situation, it is wide expected that the Fed volition statesman raising its benchmark involvement complaint successful March, “which would mean that equilibrium expanse simplification could commencement earlier summer.”

Here’s a look astatine what crypto analysts are saying astir the latest Bitcoin terms driblet successful BTC and what could beryllium successful store successful the weeks up arsenic the casual wealth policies of the Fed travel to an extremity and involvement rates commencement to rise.

Capitulation looms beneath $44,000

A foreshadowing of Jan. 5’s pullback was offered by crypto expert and pseudonymous Twitter idiosyncratic Rekt Capital who posted the pursuing illustration highlighting the “many similarities betwixt this BTC scope and May 2021.”

BTC/USD 1-week chart. Source: Twitter

Rekt Capital said,

“Both saw BTC consolidate wrong 2 Bull Market EMAs (i.e., greenish 21-week & bluish 50-week EMA). If BTC is to repetition history, a capitulation lawsuit could instrumentality spot wherever BTC concisely deviates beneath the bluish 50 EMA.”

BTC needs to reclaim $46,000

A much in-depth look astatine the terms enactment from May was offered by expert and Cointelegraph contributor Michaël van de Poppe, who posted the pursuing illustration detailing however BTC performed during the past crisp marketplace pullback.

BTC/USDT 4-hour chart. Source: Twitter

van de Poppe said,

“And the script of the driblet beneath $46K is taking spot connected Bitcoin here. The question becomes volition we beryllium hanging here, taking the liquidity & breaking backmost supra $46K? In that case, the bottommost is in.”

Should the terms not interruption backmost supra $46,000, the marketplace could beryllium successful for an extended carnivore play that has the imaginable to spot BTC retrace to the debased $30,000 range.

Related: President Biden is considering economists to capable Fed seats arsenic enactment nominations determination to Senate: Report

The script presently facing the marketplace was succinctly addressed successful the pursuing illustration posted by options trader and pseudonymous Twitter idiosyncratic Nunya Bizniz.

BTC terms vs. RSI. Source: Twitter

Nunya Bizniz said,

“BTC monthly: Drops beneath the existent RSI level person been ugly. This time?”

The wide cryptocurrency marketplace headdress present stands astatine $2.123 trillion and Bitcoin’s dominance complaint is 39.4%.

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.