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.
Similar Reading: Kraken CEO Declares That Bitcoin below $40k is a Buying Opportunity| Kraken CEO Says Bitcoin Below $40k Is A Buying Opportunity
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.
| Bitcoin Rises, Bulls Might Aim for Larger Growth To $52K