Financial markets are still concerned about the Federal Reserve’s upcoming monetary policy. Equity markets continue to turn red, creating a lot of selling pressure for risky assets like bitcoin (BTC). Nevertheless, the hope remains that the bitcoin price has bottomed out and will soon be decoupling from the equity markets.
Tech Stocks get hammered as bond yields hit 2y high w/investors fretted over whether the Fed will raise rates more quickly than expected. Nasdaq slumped 2.6%. Drop from ATH now 10.7%. pic.twitter.com/xDE7Ge8lgy
— Holger Zschaepitz (@Schuldensuehner) January 18, 2022
Bitcoin price disconnects for a while
Bitcoin was rejected a week ago at $44,000 and then entered a slight downtrend. The emphasis here is on light, as the price moves mostly sideways in an increasingly narrow range.
However, bitcoin seemed to recover for a while last night and made another big bounce from $41,700. The price shot to $42,500 from $41,700, up 2%. Bitcoin seemed to be disconnecting from the stock market for a while.
Bitcoin in orange, Nasdaq in blue pic.twitter.com/eXS07Jw36G
— Will Clemente (@WClementeIII) January 18, 2022
However, the resistance was still too great there and a few hours later, bitcoin plummeted back to $41,700. The price initially appeared to hold up here, but this morning bitcoin lost traction again and plummeted further to $41,250 on Binance and €36,400 on Battle. It is the lowest price since the price rose below USD 40,000 towards USD 44,000 after the dip. Can bitcoin now make a bounce or should the price fall further first?
Analysts convinced of bottom
Many analysts are still strongly convinced that we are close to a bottom. There is talk of one last shake-out before bitcoin breaks out and that could mean a dip to the area between $38,000 and $40,000. However, if bitcoin does not bounce here, the price could drop all the way towards $30,000. The following well-known analysts are all talking about a possible bottom:
The #Bitcoin Entity-Adjusted Dormancy Flow indicator has received some attention recently as it has dipped into the green zone, which historically has been a good buying opportunity for $ BTC as indicated by the circles. pic.twitter.com/QIoUGlWfkU
– Jan Wüstenfeld (@JanWues) January 18, 2022
During post Halving #Bitcoin bull market (green band) the price does not test the orange line at Balanced Price.
That line specifically marks major bottoms in bear markets. This is not the current case, from historical data this has never happened, probability is favorable. pic.twitter.com/5USOJ2LgkA
— G a a h (@gaah_im) January 18, 2022
I am not sure why the narrative of a lengthened version of 2013 is not more popular. #Bitcoin #BTC
Today = 0.39 NUPL
We are not even close to crossing into the 0.25 level which has triggered the last 3 TRUE bear markets.
Data: @glassnode pic.twitter.com/YDLBwUoA5r
— Plan©️ (@TheRealPlanC) January 19, 2022
Few Short Term Holders are in profit, similar to June/July mini-bear bottom and March 2020 crash. Bottom territory. #Bitcoin pic.twitter.com/1mQj1ye2jV
— Root 🥕 (@therationalroot) January 19, 2022
–
