At the moment, the Federal Reserve, the US central bank, seems to largely determine the direction of the financial markets, including those of the cryptocurrencies. Bitcoin (BTC) could yesterday, after high inflation figures are announced in the US, again to a higher range.
damn Santa didn’t take the transitory inflation away https://t.co/P1CFEIQyNV
— jack⚡️ (@jack) January 12, 2022
The crypto market seems to be increasingly confident that the recent dip, which the bitcoin price briefly below $40,000, the bottom was. Market fear is easing further and further, although it is still very high.
Bitcoin price to higher range
Bitcoin was able to break through $42,000 Tuesday evening, but around $43,000 there was still a little too much resistance initially. Then the US inflation figures came out and the share price started to rise again. Bitcoin rocketed from $42,700 to $44,150 cryptocurrency-exchanges as Binance, an increase of 3.4%.
There, however, the resistance was still too great and bitcoin corrected downwards again, but the price quickly found support around $43,500. Gradually, the price started to rise again and established another higher high, this time around $44,300. Once again, however, bitcoin corrected lower and found support again around USD 43,500.
At the time of writing, bitcoin is back at $44,000 or $38,400 Battle and the price may appear to be on the verge of making another attempt to break through this.
Analysts expect bounce
Should bitcoin break through $44,400, there will still be many points in the $45,000 to $48,000 range where there is a lot of resistance. Bitcoin most likely will not be able to break through all of these barriers at once.
Nevertheless, more and more analysts are sounding bullish about the price. There is talk of a further short squeeze which can lead to a huge bounce. That will depend largely on what the macro does. In any case, the declining US dollar index (DXY) already seems to be in the hands of bitcoin:
#DXY breaking down ???????????? pic.twitter.com/d8LuryK3va
— CryptoBoss (@CryptoBoss1984) January 13, 2022
Analyst company Santiment reports that the available supply of bitcoin is still declining rapidly on the exchanges, a very bullish sign.
???? Despite #Bitcoin being 36% below its #AllTimeHigh 2 months ago, coins continue to move away from exchanges at an impressive rate. The 26.3k $ BTC difference between exchange outflow & inflow yesterday is an encouraging sign of less ongoing selloff risk. https://t.co/GZWYrAWvY7 pic.twitter.com/qiUQ6ntWfD
– Santiment (@santimentfeed) January 12, 2022
This analyst, ‘M_Ernest.’ explains in detail why he believes there is a good chance that bitcoin has bottomed during this correction:
#BTC
Do you think we have reached the bottom of this correction? I think there is a high probability that this is the case. I leave you my technical analysis, on-chain and derivative (options). In the graphics I expose my points of view.
Can this analysis change? Obviously yes
???? pic.twitter.com/wMMATf6eeW— M_Ernest_????₿ (@M_Ernest_) January 12, 2022
Analyst Matt Chang explains why he thinks bitcoin has not yet peaked in this bull cycle:
Breaking down Bitcoin – Why I don’t think the top is in yet.
Here I use 3 metrics from @glassnode
-Realized Profits
-Realized Losses
-Dormancy FlowIt’s a lot to take in so I’ll do my best to break down my thesis…#BTC #CTMADL pic.twitter.com/fAs5gqqIEA
— Matt Cheng (@MattchengBtm) January 13, 2022
If not disturbed by any external factors – coming from the outside of the crypto market – it seems that $ BTC might be on its way to recovery into 46-48k USD region???? pic.twitter.com/tvRZ2k3WEh
— CRYPTO₿IRB (@crypto_birb) January 13, 2022
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