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Bitcoin struggles to hold $47K as Fed meeting adds to ‘excessive’ BTC market panic

Bitcoin (BTC) sought cues from the United States Federal Reserve on Dec. 14 as markets waited anxiously for information on coverage. 

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

BTC increased lows stay protected

Data from Cointelegraph Markets Pro and TradingView confirmed BTC/USD persevering with in a variety round $47,000 as Wall St. opened on Dec. 15.

The pair had hit native highs of $48,785 on Bitstamp in a single day however was down 3% on the time of writing forward of a key Fed meeting.

The Federal Open Market Committee (FOMC) will start discussions at 2 pm Eastern Time, with expectations specializing in rates of interest, inflation and asset buy tapering.

A hawkish stance is foremost in analysts’ minds, this doubtlessly inflicting ache for danger asset holders within the brief time period ought to the Fed’s strategy turn out to be much less liberal.

“Markets are forward-looking. Crypto is even more so because it’s not under anyone’s control. It’s the only free market left in the world,” well-liked crypto dealer Pentoshi summarized in a Twitter dialogue on the problem.

“The Fed is still adding to it’s balance sheet but at a decreased rate. Smart money prepped last month. Slow money this week.”

Traditional markets have been equally directionless, with the S&P 500 down 0.22% on the day.

As Cointelegraph reported, with Bitcoin underperforming in contrast to what many assumed This autumn 2021 would appear like, a consensus is constructing that 2022 will type the market cycle peak for each BTC and altcoins.

“The panic & bearish sentiment towards BTC is extreme right now. But there’s nothing extreme about this -38% retrace,” fellow dealer and analyst Rekt Capital reiterated.

“Over the years, BTC has retraced 30–40% many times in Bull Markets. In fact, $BTC retraced -53% this past May -38% isn’t extreme.” 

Rekt Capital beforehand famous {that a} shut above $42,300 nonetheless represents the next low formation for BTC/USD.

Fear is throughout

On altcoin markets, the temper was extra pronounced in its skew to the draw back.

Related: Bitcoin sheds ‘dumb money’ as retail buys most BTC since March 2020 crash

Out of the highest ten cryptocurrencies by market cap, all besides Solana (SOL) have been mildly within the purple on day by day timeframes.

Dogecoin (DOGE), recent from its Tesla publicity, managed to safe round half of its 25% positive factors.

“Right now, people are easily selling their bags as they are convinced a huge drop will happen tonight,” Cointelegraph contributor Michaël van de Poppe argued.

The Crypto Fear & Greed Index stood at 28/100, up from 21/100 on Tuesday, marking a transition from “extreme fear” to “fear” inside its personal vary reflective of Bitcoin’s latest strikes.

Crypto Fear & Greed Index. Source: Alternative.me