The bears stick their claws out – Hopes of a bullish rally towards $ 50,000 are dwindling as bears crack major token support for bitcoin (BTC). This technical indicator calls for a reversal of the current trend in the very short term, but traders’ sentiment complicates forecasts.
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Bitcoin under 40,000: Goldman Sachs and the Fed feed the bears
Bitcoin drops to $ 39,677 on Bitfinex today, Jan 10, 2022. The rebound allows the bulls to regain the $ 40,000 and then the $ 41,000, so buyers are responding and traders and investors are buying troughs. Bitcoin is trading at $ 41,502 at the time of writing, and is currently recording a 2.81% daily loss.
As bitcoin opened the day at levels near $ 42,000, it fell to around $ 40,600, following Goldman Sachs’ announcement of its interest rate hike forecast. Goldman Sachs expects the US Federal Reserve increases interest rates by four times, and not three times, in 2022.
Although the daily RSI (14), which currently stands at 29, shows a strongly oversold market on a daily basis, can we really expect a trend reversal on this timescale, following the bitcoin fall below $ 40,000 accentuating the feeling of fear in the markets ?
Bitcoin and fear of 2021 lows: bulls’ hope at $ 40,600
The third of January 2022 has passed, bitcoin records a loss of more than 10% since the beginning of this year. It fell below the October 2021 low, and the loss of $ 40,000 today raises fears of a drop of several days or weeks below September 2021 lows.
Trader Michaël van de Poppe still remains optimistic despite a context that seems bearish in the very short term. He estimates that if the $ 40,600 is maintained, bitcoin could take back the $ 42,600 and potentially the $ 46,000.
2022 is far from reassuring the bulls, the year could be that of the bears despite the hopes of a six-digit bitcoin in the coming months. A fall to levels close to $ 35,000 would most likely force the more optimistic to revise their forecasts.
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