On Jan. 24, bears remained in complete control of cryptocurrency markets. To the surprise of many, they managed pound Bitcoin (BTC), to a multi-month low of $32,967 early trading hours. CME futures gaps were left unfilled from July 2021. This downgraded move was a filling.
Cointelegraph Markets Pro and TradingView data show that the $36,000 mark was surpassed in Monday’s early trading hours, leading to a selloff that fell below $33,000, before dip buyers arrived to buy the price back above $35,000.
BTC/USDT 1-day chart. Source: TradingView
Here are some thoughts from analysts about macro factors in global financial markets. What should you be looking out for in the coming months?
“Rate increases don’t kill risk assets.”
The prospect of four Federal Reserve interest rate increases over the course 2022 has been the talk of the U.S. financial market for several weeks. Many people believe this will end the bull market.
According to Tascha, a financial analyst and pseudonymous Twitter User, this is a common myth because rate hikes don’t kill risk assets.
“Reversal in quantitative easing does. Take a look at what happened to stocks in 2015 and 2018, when the Fed shut off the tap.
The following response was posted by RK Maruvada, a pseudonymous user on Twitter. It provides further insight into Tascha’s tweet.
Is it time for a bottom?
John Bollinger, a technical analyst and creator of Bollinger Bands, offered some hope to crypto-lovers with the following tweet: “It’s time for us to start thinking about a bottom”
It is time to think about a bottom for cryptos. A retest will be required if the Bollinger Band is not broken. I plan to wait for a bottom, bounce, and then search for a retest that could be used as an entry. $btc, $eth, $ltc…
— John Bollinger (@bbands), January 24, 2022
Although the market is in the area of a bottom according to a well-known analyst, it is important to be cautious and wait for a bounce before entering a long position in BTC.
Related: Bitcoin ‘enters value zone’ as BTC price floor metric goes green again
Opening a Bitcoin long “looks appealing here”
Kevin Kelly, macro strategist and co-founder of Delphi Digital, provided a final analysis. He stated that “the big questions now are where will the next wave in demand come from and at what level should we aim to trigger such bids.”
BTC/USD 1-day chart. Source: TradingView
Kelly says that the mid-to high $30,000s for Bitcoin are a safe bet, especially considering that many believe Bitcoin could “run up to $70,000”.
This would represent a 75% increase from current levels. Kelly believes that large capital allocators would be thrilled to have the chance to capture this opportunity, even if it takes a long time to realize these gains.
“BTC is attractive to those who have a long enough time frame, especially when compared with traditional options to store your capital.”
The sentiment that BTC is at an acceptable level for a long time was also expressed in the tweet below by Will Clemente, a cryptocurrency analyst and user on Twitter.
Do not think that asymmetry is biased to the disadvantage of BTC. This is a great area for long-term investors to DCA in heavier buys IMO.
Will Clemente (@WClementeIII), January 24, 2022
The total cryptocurrency market is now worth $1.594 trillion. Bitcoin’s dominance rate at 41.9%.
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