Key Takeaways
- Bitcoin (BTC) gained a necessary 10% today as it looked to recover from the latest slump
- The Fed meets tomorrow to discuss its policy of tapering
- As BTC price targets $39,000, some fear it may fall as low as $18,000-$20,000 in the days to come
YEREVAN (CoinChapter.com)- Following the massive dump last week that saw Bitcoin price shed over 50% since its record high in November, BTC seems to be on the path to recovery. The price of the world’s largest cryptocurrency fell to $33,184 yesterday. Long-term investors took advantage of the massive discounts, picking up BTC dropped on exchanges by panic sellers.
At the time of writing, Bitcoin’s (BTC) price today has rallied 8% on the daily chart to reach a solid $37,327, according to data available on CoinMarketCap. The recent crash has reportedly undone all the gains Bitcoin registered since July, after slumping 22% in the previous 4 days.
According to the charts, BTC price today has formed a reverse candle. The bulls will be looking to bring the $38,000 mark into play in the days to come.
Bitcoin’s price fall did not come as a surprise to everyone. Crypto analyst Michael Gogel had predicted the price dip last month. Answering a question from Kraken Exchange, Gogel had warned the charts didn’t favor BTC in earlier January of 2022.
On December 26, when Gogel made his prediction, Bitcoin traded above $50,000 per coin. He has been making some pretty accurate predictions of late.
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What lies ahead for Bitcoin (BTC) this week?
After flipping the $36,000 mark, bulls will be looking to keep the BTC price above $37,000. According to CNBC’s “Mad Money” host Jim Cramer, the downtrend of Bitcoin and other major cryptos is over. Based on the analysis of Tom DeMark, CEO of DeMARK Analytics, Cramer suggested that people will soon stop selling BTC. As a result, traders will be enriching their coffers with more Bitcoin and Ethereum (ETH).
“When the charts, as interpreted by Tom DeMark, say that both Bitcoin and Ethereum could be looking at downside trend exhaustion bottoms this week, if not today, I think you need to take him seriously. To me, that says it might be too late to sell and you need to consider buying,”
Cramer said.
However, the path to recovery may not come as easily. The Federal Open Market Committee (FOMC) meets tomorrow. Whatever result comes out of the meeting will impact the future course of action for Bitcoin and the rest of the cryptocurrency market.
Investors will attentively follow Fed Chairman Jerome Powell’s comments before proceeding further. According to crypto analyst Michaël van de Poppe, volatility will probably remain high on Bitcoin (BTC) and the markets.
“Tomorrow’s FED FOMC meeting could mean that we will see lots of volatility this week,”
Poppe claimed.
After tomorrow’s meeting, the US Central Bank may begin tightening monetary policy in attempts to put an end to its Quantitative Easing (QE) program.
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Are worse days ahead for Bitcoin (BTC) this year?
Despite positive expectations after the recent performance of Bitcoin (BTC), the price of BTC may fall further.
According to Joseph Edwards, the head of financial strategy at crypto finance firm Solrise, colder winters await for BTC.
Business Insider quoted Edwards claiming Bitcoin will drop to $18-20K before beginning an upward momentum.
Talking about Bitcoin bottoming at $30,000, Edwards said he expects the price of BTC to fall further.
“I think that’s optimistic. I think you’re more likely to see somewhere between $18,000 to $20,000 across the entire year,”
he said.
Despite all the predictions, investors will have their eyes on the Fed’s meeting tomorrow. Until then, Bitcoin’s (BTC) price has received a much-needed respite.
