Bitcoin (BTC) price hit a new low on January 7. 2022 continues to deliver uninspiring price action.
Trader: BTC price should close above $ 42,400
Data from Cointelegraph Markets Pro and TradingView showed that The BTC / USD pair reached its lowest levels since September overnight, reaching $ 40,938 on Bitstamp.
The pair had initially bounced off $ 42,000, but then renewed its decline, exceeding the minimum seen in the December liquidation cascade.
Among traders, the discussion centered on a similar event occurring, with targets that even included a drop below September lows of $ 30,000.
“It could go even lower with a liquidation wick, below September lows,” warned popular Twitter trader Crypto Ed as part of his latest forecast.
At current levels, Bitcoin was also threatening to disappoint trader Anbessa on daily time frames.
#Bitcoin price action explained (3/4)
Zoomed in:
Bearflag channel support hit after fakeout ✔️
Inv H&S support hit again (2nd time) ✔️While I would tolerate a fakeout to $ 39,333 intraday
this support right now $ 42.4k should hold DAILY pic.twitter.com/Qv69dekie9– AN₿ESSA (@ Anbessa100) January 6, 2022
#Bitcoin Price Action Explained (3/4). Analysis:
Bearflag channel support hit after fakeout ✔️
Inverted head and shoulders stand hit again (2nd time) ✔️
However, it would tolerate a fakeout to $ 39,333 intraday. This support right now, at $ 42,400, should hold DAILY.
Commentators argued that the macro odds were against Bitcoin and cryptocurrencies, with the headwinds coming from, among other things, events in Kazakhstan, where 18% of the Bitcoin hash rate is estimated to be located.
Following massive internet outages across the country this week, hash rate estimates began to show a steep drop. of around 20 exahashes per second (EH / s) from what were previously all-time highs of 192 EH / s, evoking last year’s exodus of Chinese miners.
“The money printer keeps printing”
Looking to the future, Others were also reticent about the outlook for the cryptocurrency market thanks to macroeconomic policy.
Among them is Arthur Hayes, former CEO of derivatives exchange BitMEX, who noted that the rate hikes programmed by the United States Federal Reserve and the reduction in asset purchases are souring the appeal for holders of risky assets.
Easy money, wrote in a new blog post, it’s running out.
The money printer ain’t going BRRR, so #crypto is about to get bludgeoned with a two-by-four studded with rusty nails. Read my essay “Maelstrom” to find out why.https: //t.co/qUPq90W4qz pic.twitter.com/sKUA4i9dF5
– Arthur Hayes (@CryptoHayes) January 6, 2022
The money printer keeps printing, so cryptocurrencies are about to take a hit from a two-by-four studded with rusty nails. Read my “Maelstrom” essay to find out why.
“Given the law of large numbers, a simple resumption of the previous trend in asset purchases will not cause money supply growth to accelerate suddenly and sharply. Therefore, although risk assets would rejoice – cryptocurrencies included – the best case is that asset purchases move slowly towards their previous all-time highs, “he said.
“Even if that happens, the only way the crypto markets would move higher is if the Fed publicly turned on the taps, and then fiat money flowed into crypto.”
It remains unknown when the Fed will raise rates, but the buying cuts have already begun.
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