TOPICS COVERED IN THIS BITCOIN ANALYSIS
- Fed bends cryptocurrency industry
- A range to predict for Bitcoin in 2022
Fed bends cryptocurrency industry
the Bitcoin saw its price boosted in 2021 by the appetite of traditional finance for this new type of investment, but the operators struggle to predict how this volatile sector will perform in 2022.
Le BTCbroke its support towards $ 44,000, reaching its lowest level in several months, after the Federal Reserve report showed it leaned for more aggressive political action, which sapped investor appetite for riskier assets.
Movements in the crypto markets More and more aligned with those of traditional markets as the number of institutions trading cryptocurrency increases.
Fears of a rate hike are making investors cautious. If the Fed is tightening its monetary policy faster than expected, which emerges from the minutes released on Wednesday, the Bitcoin will find it increasingly difficult to find favorable ground. The closing of the monetary taps makes this asset class less attractive.
Although bitcoin is seen as a hedge against inflation, this type of investment is still young, reacting to fluctuations in monetary policy, like the Nasdaq focused on tech stocks.
Bitcoin in monthly data
A range to predict for Bitcoin in 2022
Graphically, the Bitcoin seems to have lost some of its shine since several weeks. Mdespite a new record in October, theactive began a powerful correction with equally spectacular dives during the month of December.
2022, a year of range for Bitcoin?In any case, the monthly bearish divergence on RSI is activated (as on L’Ethereum). Thus, this graphic structure pleads for a corrective movement of greater magnitude to come.
Indeed, BTC has made a foray below the support area around $ 44,000. As a result, the sellers are in control and a bearish acceleration towards the next support levels would not be ruled out. Now theyour next thresholds to watch are around $ 41,000, $ 36,600 and $ 30,000.
Long-term consolidation within a range between $ 61,750 and $ 30,000 is now possible. Therefore, it will be necessary to be more selective on cryptocurrencies, focus on those that evolve in an uptrend and invest in future projects that will bring the cryptos of tomorrow (Metaverse, NFT and DeFi in 2021).
To conclude, we will have to be patient in a market of tidy long-term. Of course, there will still be opportunities especially on altcoins. So it will be necessary to be attentive to the next themes that will emerge in this growing market.
Twitter @Joris zanna
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