Bitcoin (BTC) cashed in at new lows on January 7 as 2022 continues to deliver uninspiring price action.
Trader: Bitcoin Should Close Above $42,400
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD reached its lowest level since September overnight at $40,938 on Bitstamp.
The pair initially rebounded at $42,000 but then renewed its decline, breaking through the floor seen in the liquidation streak in December.
Among traders, the discussion focused on a similar event, with targets including a breakdown below the September low of $30,000.
“It could drop with the wick to liquidation, well below September lows,” famous Twitter trader Crypto Ed said. warned As part of his latest forecast.
At current levels, Bitcoin also threatened to disappoint trader Anbessa on the daily time frames.
# bitcoin Explanation of Price Action (3/4)
Hit Bearflag channel support after fake ✔️
Hit Inv H&S Support again (the second time) ✔️
While I was racking up a fake deal of $39,333 a day
This support should now hold $42.4K per day pic.twitter.com/Qv69dekie9
– Anissa (@Anbessa100) January 6 2022
Commentators have argued that the macro odds have been stacked against both bitcoin and cryptocurrencies, with headwinds coming from – among other things – events in Kazakhstan, home to an estimated 18% of bitcoin’s hash rate.
After mass internet outages across the country this week, hash rate estimates are starting to show a surprising drop of about 20 exahashes per second (EH/s) from an all-time high of 192 EH/s — triggering an exodus of Chinese miners last year.
BRRR Money Printer Won’t Work
Looking ahead, others have also remained subdued by the prospects of the cryptocurrency market thanks to the macroeconomic policy.
RELATED: Bitcoin’s Monthly RSI Is Lowest Since September 2020 In New ‘Oversold’ Signal
Among them was Arthur Hayes, the former CEO of derivatives exchange BitMEX, who referred to scheduled interest rate increases by the US Federal Reserve and cuts in asset purchases as spoiling the attractiveness of holders of risky assets.
In a new blog released, he wrote, easy money is drying up.
BRRR Money Printer Won’t Work, So # encrypt On the verge of getting hit with a two-in-four studded with rusty nails. Read my “Maelstrom” article to find out why. https://t.co/qUPq90W4qz pic.twitter.com/sKUA4i9dF5
– Arthur Hayes (@CryptoHayes) January 6 2022
“Given the law of large numbers, a simple resumption of the previous trend in asset purchases will not cause money supply growth to accelerate abruptly and sharply. So, while risky assets will rejoice – including digital currencies – the best case is that asset purchases trend slowly. towards its all-time high.
“Even if it did, the only way the cryptocurrency markets could move higher would be if the Federal Reserve turned on the faucets publicly, and then securities flowed into crypto.”
It is still unknown when the Fed will raise interest rates, while the purchase cuts have already begun.