Meta/crypto

Bitcoin struggles to hold $ 47,000 as the Fed session adds to the “extreme” BTC market panic

Bitcoin (BTC) sought clues from the Federal Reserve on Dec. 14 as markets waited anxiously for policy news.

BTC / USD 1-hour candle chart (Bitstamp). Source: TradingView

Higher BTC lows remain safe

Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD remains in a range of around $ 47,000 as Wall St. opens on Wednesday.

The pair had hit a local high of $ 48,785 overnight on Bitstamp but was down 3% at the time of writing, ahead of a major Fed meeting.

The Federal Open Market Committee (FOMC) will begin discussions at 2:00 p.m. Eastern Time, with expectations centered on interest rates, inflation, and asset leakage.

Most analysts think of a restrictive stance, which could potentially hurt risky asset holders in the short term if the Fed’s approach becomes less liberal.

“Markets are future-oriented. Crypto even more because they are not controlled by anyone. It’s the only free market in the world, “said popular crypto trader Pentoshi in a Twitter discussion on the subject.

“The Fed is still adding something to its balance sheet, but at a lower rate. Smart money prepared last month. Slow money this week.”

Traditional markets were similarly directionless, with the S&P 500 losing 0.22% over the day.

As Cointelegraph reportedAs Bitcoin underperforms in the fourth quarter of 2021 compared to what many have assumed, a consensus is building that 2022 will be the peak of the market cycle for both BTC and altcoins.

“The panic and pessimistic mood towards BTC is extreme at the moment. But this return of -38% is not extreme, ”says trading colleague and analyst Rekt Capital repeated.

“Over the years BTC has retreated 30-40% many times in bull markets. In fact, last May, $ BTC was down -53%. -38% is not extreme.”

Rekt Capital beforehand noticed that a closing price above 42,300 USD is still a higher low formation for BTC / USD.

Fear is everywhere

Sentiment was more downward in the altcoin markets.

Related: Bitcoin is losing “stupid money” as retailers have been buying most of the BTC since the March 2020 crash

Of the top ten cryptocurrencies by market capitalization, all but Solana (SOL) were slightly in the red in the daily timeframe.

Dogecoin (DOGE), fresh from its Tesla ad, was able to secure around half of its 25 percent growth.

“At the moment people are selling their bags easily because they are convinced that a huge drop will happen tonight,” wrote Michaël van de Poppe. by Cointelegraph argued.

the Crypto Fear and Greed Index stood at 28/100, up from 21/100 on Tuesday, making a transition from “extreme fear” to “fear” within. marked its own range reflects Bitcoin’s recent moves.

Crypto Fear and Greed Index. Source: Alternative.me

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