Bitcoin (BTC) scooped liquidity at a new low on January 7 as 2022 continued its unstimulated price behavior.
Trader: BTC price should end above $ 42,400
BTC / USD reached its lowest level since September, reaching $ 40,938 in Bitstamp, according to data from Cointelegraph Markets Pro and TradingView.
The pair initially bounced off at $ 42,000, but then renewed its decline beyond the floors seen in the December clearing cascade.
Among traders, the focus was on similar events happening, including crashes below the $ 30,000 low in September.
“It could be even lower on a clearing wick below September’s lows,” said popular Twitter trader CryptoEd. caveat As part of his latest forecast.
Therefore, at the current level, Bitcoin threatened to disappoint trader Ambessa in the daily time frame.
#Bitcoin Explanation of price behavior (3/4)
Zoom in: Zoom in:
Bear flag channel support hit after fake out ✔️
Inv H & S support hit again (2nd time) ✔️
I tolerate counterfeiting to $ 39.333 during the day
This support should currently hold $ 42,4k daily pic.twitter.com/Qv69dekie9
-AN₿ESSA (@ Anbessa100) January 6, 2022
Macro odds are piled up against both Bitcoin and cryptocurrencies, and commentators argued that the event in Kazakhstan, where an estimated 18% of Bitcoin’s hash rate is present, is causing headwinds.
Hash rate estimates have begun to show a sharp drop of about 20 exahashes (EH / s) per second, from a record high of 192 EH / s, after a massive Internet outage this week. .. This is reminiscent of the escape of Chinese miners last year. ..
“Money printers have not moved to BRRR”
In the future, macroeconomic policies have left others constrained by the crypto market outlook as well.
Related: Bitcoin Monthly RSI is the lowest fresh “oversold” signal since September 2020
Among them was Arthur Hayes, former CEO of derivative exchange BitMEX, who pointed out the planned rate hikes and cuts in asset purchases by the US Federal Reserve as stimulating the attractiveness of risk asset holders. Did.
The simple money he wrote in his new blog post is essentially exhausted.
Money printers will not move to BRRR, so #crypto I’m about to be beaten with a 2×4 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
“Given the law of large numbers, simply resuming the previous trend of asset purchases does not suddenly accelerate the growth of the money supply, so risky assets will be pleased (crypto currency). The best case is that asset purchases will slowly rise towards previous record highs, “he insisted.
“Even if that happens, the only way the crypto market will rise is if the Fed publicly taps on and then fiat flows into the crypto.”
Purchase cuts have already begun, but it’s unclear when the Fed will raise interest rates.