The commotion over a $100,000 price for Bitcoin (BTC) has faded since it failed to hold its own at the price record of around $69,000. Traders are not completely baffled, however. At the moment, most analysts consider the current price range as an optimal accumulation zone.
Over the past week, markets have been a little shaky. This is due to the fact that investors around the world became increasingly nervous about the December 15 Federal Open Market Committee meeting. However, the confirmation that the Federal Reserve would implement three rate hikes and phase-out in 2022 seems to be positive.
Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin remains above USD 47,000. Following Chairman Powell’s statement, the price rose about 0.55% and now stands at $49,000.
The image above shows what market analysts expect from the Bitcoin price now that the Fed’s 2022 policy intentions are known.
Solid support near USD 46,500
A more detailed analysis of the recent price action came from options trader and Twitter user John Wick. He posted the following chart highlighting the bullish and bearish reversals that have been occurring over the past two weeks.
According to Wick, Bitcoin’s recent price action has provided solid base support. It is represented by the yellow horizontal line at $46,588. This line is called a “phase 1 base”.
“We can expect volatility to increase. The next thing I’m focusing on is an upcoming squeeze. This could turn out just like it did in July after we focused on phase 1 support. The next stage is fire.” According to Wick.
Volatility is part of the price
Compared to historical price action after all-time highs, the current volatility in the market is nothing to worry about. Said independent market analyst Rekt Capital, who tweeted that the market has seen similar declines in previous bull markets.
The panic & bearish sentiment towards #BTC is extreme right now
But there’s nothing extreme about this -38% retrace
Over the years, BTC has retraced 30-40% many times in Bull Markets
in fact, $BTC retraced -53% this past May
— Rekt Capital (@rektcapital) Dec 15, 2021
Trader and Twitter user Crypto Ed_NL also expects a bounce in the future. He posted the following chart outlining how price action could play out in the coming weeks. Ed_NL said the following:
“Expectations for the next few hours: one more down in green before the FOMC result, a bounce after the FOMC and then a continuation of the bull run.”
A Reflection of September’s Bitcoin Price Actions
One last bit of perspective was offered by crypto investor and Twitter user Crypto Bull God. He posted the following chart comparing Bitcoin’s current price action with how it performed in September before the bullish breakout.
The analyst said the following:
“I’ve been staring at this for a long time the past few days. I’m not saying this will happen, but I definitely see a similarity with September of this year now.”
While no one can know for sure what the end of this year will bring, the following tweet pointed to a possible sign that Bitcoin could end the year strong.
Whales are buying and heavily getting into the markets in these ranges.
Retail is scared.
— Michaël van de Poppe (@CryptoMichNL) Dec 15, 2021
The total market cap of cryptocurrencies now stands at $2.2 trillion and Bitcoin’s dominance is 40.7%.