Bitcoin price drops to $43.7K after Fed minutes re-confirm plans to hike rates

Bitcoin (BTC) and the broader cryptocurrency market plummeted as stock markets tumbled at the closing bell after minutes from the Federal Reserve’s Federal Open Market Committee meeting in December showed the regulator committed to cutting its balance sheet and raising interest rates in 2022.

With the stock market correction, BTC price followed suit with a drop below $44,000, leading to a series of liquidations that reached $222 million in less than an hour.

Total filter. Source: Coinglass

Data from Cointelegraph Markets Pro and TradingView shows that after swinging around the $46,000 support in the past two days, bitcoin has been sold off, sending the price down to an intraday low of $43,717.

4 hour BTC/USDT chart. Source: TradingView

Based on the current situation, the Fed is widely expected to start raising the benchmark interest rate in March, “which means that the balance sheet reduction could start before the summer.”

Here’s a look at what crypto-analysts have to say about the latest bitcoin price drop in BTC and what could be in store in the coming weeks as the Fed’s easy money policies come to an end and interest rates begin to rise.

Looms Below $44,000

The harbinger of January 5 withdrawal was provided by a crypto analyst and Twitter user under the pseudonym Rekt Capital who Spread The following chart highlights “there are many similarities between this BTC range and May 2021.”

BTC/USD 1-week chart. Source: Twitter

Rekt Capital said,

“Both saw Bitcoin consolidating within two bull market EMAs (ie, a green 21-week EMA and a blue 50-week EMA). If BTC were to repeat history, a capitulation event could occur where BTC briefly deviates from the blue 50 EMA.”

BTC needs to recover $46,000

Analyst and Cointelegraph contributor, Michael van de Poppe, provided a more in-depth look at price action from May, which Spread The following chart details how Bitcoin has performed during the most recent market downturn.

4 hour BTC/USDT chart. Source: Twitter

Pope said,

The scenario of a drop below $46K is happening on Bitcoin here. The question becomes are we going to hang around here, take the liquidity and break back above the $46K? In this case, the bottom is on the inside. “

If the price does not break again above $46,000, the market may be in an extended bearish period that has the potential to see a BTC correction to the lower $30,000 range.

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The scenario facing the market currently is addressed briefly in the following chart posted by options trader and Twitter user pseudonym Nunya Bizniz.

BTC price against RSI. Source: Twitter

Nonya Busneys said:

“Bitcoin Monthly: dips below the current RSI level have been ugly. This time?”

The total cryptocurrency market capitalization is now $2.123 trillion and the bitcoin dominance rate is 39.4%.

The opinions and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.