Last Updated on December 18, 2021
Bitcoin Price Forecast
The news from the FED meeting will be an area of focus for the Crypto brokers as they analyze their decision and how they will benefit users of cryptocurrency in the future.
The market has been unstable in the past few days and the fear of another COVID-19 variant known as Omicron has put fear into the market. Let us look at the chart for a better view.
BTCUSD: Technical Analysis
Monthly Resistance Levels: 69000, 66987, 64895
Monthly Support Levels: 53068, 39573 29296.
The last candle of the year is showing more of a bearish momentum as the market is reacting to the previous action of crypto brokers who short down the price as of 01 April 2021 when the price hit the 64895 level. Recently, the market reacted around the zone due to a previous human behavioral pattern that made the BTCUSD pair drop.
The psychological point for the long crypto brokers is at the support level of 41500 level. If they can hold the zone, we shall see the bitcoin price rise from the zone but if the level should fall to the Bears the price may fall to the 29296 support levels.
Weekly Resistance Levels: 69000, 59250,
Weekly Support Levels: 53309, 40750
The bearish engulfed candle on 15 November 2021, gave the sign that the short position traders have dominated the market and it is because of the previous resistance zones. The Crypto brokers were able to take the price down and the price tested the previous support level of 40750 after the price broke below the 53309 levels.
The price a retest the low again before we notice we can confirm any buying momentum in the market. However, a close above 51991high of 06 December 2021 will take the price higher.
Daily Resistance 66387, 60978,
Daily Support 58563, 53308
BTCUSD pair finally broke out of consolidation with a strong flash to the downside. The bearish momentum on the 4th of December broke the support levels of 53308 and the market moved about 21.43% to the south that very day. Crypto brokers who anticipated the move will benefit from the flash because it was obvious that the price of bitcoin was going to drop.
Right now, the price of the BTCUSD pair is consolidating and it is advisable to wait for the market to settle down before small account holders can invest. It is also an opportunity for the whales to keep buying the deep because it gives them the advantage to earn more when the bullish rally starts.
A bullish scenario is possible on the daily time frame because the price is in a confluence zone. If the Bulls can reject the Bears around the current level, we shall see a bullish surge from one of 53118 levels.
On the daily chart, the bears need to close below the 53118 level because it is a confluence zone with a strong bearish candle if the price of bitcoin must fall lower.
Bitcoin BTC News Events
EFFECT OF FED MEETING ON BITCOIN AND OTHERS
The Federal Reserves held its last meeting for the year and announced its plans on the interest rates hikes for the year 2022 and its acceleration plan on tapering to be $30 billion a month instead of the $15 billion it proposed earlier. Tapering is a central ban strategy to reduce the effects of quantitative easing thereby focusing on the interest rates while slowing asset purchasing.
Since Jan 2020, the Feds book recorded an $8 billion growth from $4 billion while excess printing of money acted as a catalyst for assets to soar in value and you can see the benefits in Apple and Tesla with a record over last year high, likewise the crypto market also see gains following the recent macroeconomic environment.
Crypto brokers, retail traders, and investors took to Bitcoin and other digital assets for refuge when the inflation level was on the increase. With the inflation level hitting a thirty-one yr high in November, the bitcoin [BTC] price hit ATH of $69000 as an inflation hedge.
Many investors are still Bullish on the Feds meeting as they see a positive tone for the crypto assets. The fear of the omicron variant sent fear through the global market as most assets are trading sideways but still steady.
Conclusion and Projection
Some analyst believes that the decision of the Fed will make the price of bitcoin rise because the weak dollar will boost the uptrend movement for the digital assets. The BTCUSD pair is ranging on the daily chart, we give it some time before it settles down for a clearer direction.