Bitcoin (BTC), meanwhile, sought cues of the United States Federal Reserve Dec. 14, as markets waited eagerly for any news about policy.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
BTC remains safe at higher lows
Cointelegraph Markets Pro and TradingView data showed that BTC/USD was trading in an area of $47,000 at Wall St. opening on December 15.
Although the pair had reached local highs of $48,785 overnight on Bitstamp, it was now down 3% ahead of a crucial Fed meeting.
At 2 pm Eastern Time, the Federal Open Market Committee will start its discussions. Discussions will focus on inflation, interest rates and asset purchase tapering.
Analysts tend to be hawkish, which could cause pain for risk assets holders in the short-term if the Fed becomes less liberal.
“Markets are forward-looking. Crypto is more forward-looking than ever because it’s independent from anyone. It’s the only open market in the world,” Pentoshi, a popular crypto trader, stated in a Twitter conversation.
“The Fed continues to add to its balance sheet, but at a lower rate. Smart money prepped last month. Slow money this week
Traditional markets were also directionless with the S&P 500 falling 0.22% per day.
Cointelegraph reported that Bitcoin is underperforming in comparison to Q4 2021, and that consensus is growing that 2022 will be the peak market cycle for altcoins and BTC.
“The bearish and panicked sentiment towards Bitcoin is extreme right now. Rekt Capital, a fellow analyst and trader, reiterated that there is nothing unusual about the -38% retrace.
BTC has retraced between 30-40% several times over the years in Bull Markets. Actually, $BTC was able to retrace -53% in May. -38% is not extreme.
Rekt Capital noted previously that a close above $42,300 still constitutes a higher low formation of BTC/USD.
Fear is everywhere
Altcoin markets were more positive in their skew towards the downside.
Related: Bitcoin’s retail buyers buy most BTC since the March 2020 crash.
All cryptocurrencies, except Solana (SOL), were slightly in the red over daily timeframes among the top ten by market capital.
Dogecoin (DOGE) has secured around half its 25% gains, fresh from Tesla’s publicity.
Michael van de Poppe, a Cointelegraph contributor, stated that people are selling their bags because they believe a big drop will occur tonight.
The Crypto Fear & Greed Index was at 28/100 on Tuesday, an increase of 21/100 on Tuesday. This marks a shift from “extreme fear to “fear” within the range that it tracks, reflecting Bitcoin’s recent movements.
Crypto Fear & Greed Index. Source: Alternative.me