Bitcoin’s trend has been to the negative in the last week as investors became more concerned about the macroeconomic outlook. BTC currently trades at $49,000722 with a 2.2% profit over the previous day.
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Following the Federal Open Market Committee (FOMC) where the U.S. Federal Reserve Chairman Jerome Powell talked about digital assets and potential changes to the institution’s monetary policies, Bitcoin remains range-bound.
Many traders expected this meeting to trigger a “buy the rumor, sell the news” event, but the no-event thesis, as evidenced by the post-meeting price action seems to have hit right on target. As NewsBTC reported, after the crash that took BTC’s price to the low $40,000, the market is likely to move sideways.
In the immediate term, $42,000 or $46,000 are two crucial support levels. Material Indicators estimates that there is over $30,000,000 in bid orders around these levels. Conversely, there aren’t a lot of ask orders in upper levels until $59,000.
This could suggest a BTC’s price short squeeze could be in the cards as 2021 comes to an end, a historically bullish period for the benchmark cryptocurrency. QCP Capital is an investment firm that can help you in this regard. commentedThese are the things:
In our view, the FOMC will be dovish and market could not handle a Fed that is dovish. This would make it more difficult for them to surprise investors if they were to see a price spike. A short squeeze in the January-end and early January are very likely.
QCP Capital is confident that Bitcoin can finally surpass $70,000 during a bull-run, before it becomes a bear, or fails to reach levels near its annual open of $30,000.
Ethereum may be in the spotlight if Bitcoin rises
According to QCP Capital, this could lead to Bitcoin Dominance taking a tumble as other cryptos, and especially Ethereum, are likely to outperform first cryptos by market capital. The firm has identified a bullish diverge in ETH’s price 4-hour chart for the Relative Index Strength, and MACD indicators, as seen below.
As Ethereum prepares to move into a Proof-of-Stake consensus Blockchain, 2022 may be an important year. Merge will bring together Eth 1.0 & Eth 2.0. Core developers have made it a priority and this could be the start of a new era. The Merge has already attracted a lot more attention than usual from institutions.
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