Top traders are starting to look for optimal long entries for BTC even as concerns about the Federal Reserve’s new policy directive weigh on equities and crypto markets.
Market Update
The bears remained in full control of the crypto market on January 24, and to the surprise of many, they managed to push the Bitcoin (BTC) price to a multi-month low at $32,967. during the early trading hours. This bearish move filled the CME futures gap left over from July 2021.
Data from Cointelegraph Markets Professional and TradingView shows that $36,000 was overwhelmed during early trading hours on Monday, leading to a sell-off that dropped below $33,000 before buyers dipped in to bid again. over $35,500.
Here’s what some analysts are saying about the macro factors at play in global financial markets and what to watch out for in the coming months.
“Rising rates does not kill risky assets”
For several weeks, the dominant conversation in US financial markets was the prospect of the Federal Reserve raising interest rates up to four times throughout 2022, which many have claimed would bring an end to the bull market. present.
But according to the financial analyst and Twitter user nicknamed ‘Tascha’, this is a common misconception because “rate hikes don’t kill risky assets.”
Tascha speak,
“Quantitative easing has a reversal. Check out what happened to stocks in 2015 and 2018 when the Fed turned off the faucet. ”
More details on Tascha’s tweet were provided in the following reply from Twitter user RK Maruvada.
Time to think about the bottom?
A bit of hope for crypto loyalists has been provided by technical analyst and Bollinger Bands creator John Bollinger, who posted the following tweet suggesting that “it’s time to start thinking about it.” crypto bottoms”.
It’s time to start thinking about crypto bottoms. However, the possibility of breaking out of the lower Bollinger Band several times indicates a need for a retest. My plan is to wait for a bottom and a bounce, then look for a retest as an entry. $ btc, $ eth, $ ltc…
– John Bollinger (@bbands) January 24, 2022
Although the popular analyst thinks the market may be in the general area of a bottom, caution is still needed and a bounce followed by a retest before looking to enter a position buy BTC.
Related: Bitcoin ‘enters value zone’ as BTC floor price index turns green again
Opening a long Bitcoin “looks hot here”
One final bit of analysis is provided by macro strategist and Delphi Digital co-founder Kevin Kelly, who points out that “the big question now is where will the next wave of demand come from and where are we going? What level does it need to reach to trigger it’s bid?
According to Kelly, “mid-to-high $30,000 for BTC is a safe bet,” especially since many believe Bitcoin can “raise to $70,000.”
This would mark a 75% increase from current levels, which “large capital allocators will take advantage of” in Kelly’s view, “even if it takes a year or so to recognize such an increase.”
Kelly said,
“That is why we firmly believe that BTC looks attractive here to those with a long enough time horizon, especially when compared to traditional alternatives to attract your capital. .”
The sentiment that BTC is at a good level for a long time is also echoed in the following tweet by crypto analyst and Twitter user Will Clemente.
Don’t think asymmetry is to the downside for BTC here.
For the long-term investor, this is a good area for DCA in some heavy buying IMO.
– Will Clemente (@WClementeIII) January 24, 2022
The overall crypto market capitalization stands at $1.594 trillion and Bitcoin dominance is at 41.9%.