Bitcoin, altcoins and equities rallied after the Fed posted another 0.75% rate hike. But is the current upward momentum sustainable? To answer it, let’s take a look at the new technical analysis of 4 crypto analysts.
Capo of Crypto predicts Bitcoin price to drop to $14,000
Twitter analyst Capo of Crypto expects a correction near $14,000 for BTC after reaching the mid-$21,000-$21,500 levels, which he calls a “fake pump.” The crypto analyst has recently published several analyzes on Bitcoin and Ethereum. He warned his followers about downstream and upstream conditions.
The analyst’s latest comment on Bitcoin’s price action was in line with previous predictions. Capo says that BTC is bullish in the short term. However, it continues its downward trend in a higher time frame. In a November 2 tweet, kava said:
The short time frame is bullish. Long time period decline. The last bull trap has reached the 21-21,500 region. I expect correction from this level to $14,000.
Capo also reiterated his assumption of a rally above $21,000 in other analysis. He stated that this will mark the final stage of the distribution. The analyst expects a crash to lows for BTC and all mainstream altcoins. However, he sees the recent relief rallies in the crypto markets come to an end.
Capo believes this historic turn will follow the US Intermediate Elections scheduled for November 8, as he calls the reversal trend a “mega-nuclear” for BTC and ETH. In the midst of this, BTC has started to return gains from the most recent rally during the 0.75 rate hike on Nov. Bitcoin is currently struggling to find reinforcements at $20,200 following the recent rate hike.
The 75 basis point rate hike announcement was ineffective on the market
Although Bitcoin is currently struggling to stay above $20,000, the market is generally holding on. Volatility in both the crypto and classic markets briefly spiked in the wake of Powell’s announcement. However, the price action has since calmed down as the majority of analysts expected it to drop.
According to Jim Wyckoff, senior technical analyst at Kitco, the resumption of sideways for Bitcoin on the daily chart “does not mean bearish yet”. “There is still a new price uptrend on the daily candlestick chart,” Wyckoff said. According to Wyckoff:
The bulls still have an overall short-term technical advantage, but they need to show new strength soon to maintain it.
Noting the possibility of a short-term correction to $20,000 before the uptrend resumes, Michaël van de Poppe made a positive comment on what will happen next. The analyst said current levels are an opportunity as he is targeting $22,500:
Still my view on Bitcoin: sweeping $20,000 lows will trigger a continuation in the markets and this kind of slap is usual during the FOMC, then we’re right on to $22.5k. Sole purchases can be made tonight.
Bitcoin’s latest drop was in line with the S&P 500
The last drop was S&P 500 correlated as Capo of Crypto awaited a correction to $14,000 in Bitcoin price. According to Liz Ann Sonders, chief investment strategist at Charles Schwab & Co., the 120-day moving correlation between Bitcoin and the S&P 500 index has dropped to recent highs. It currently stands at 0.58 and stays in “absolutely positive” territory for now.
Bitcoin’s always high correlation with US equities has been one of the main stories this year during the Fed’s tightening cycle. For now, stocks and cryptocurrencies alike remain in a wait-and-see mode as the Fed is expected to announce its much-anticipated rate hike decision this Wednesday. Another well-known Twitter analyst, Cred, is issuing a warning that it is time for Bitcoin to “do or die”.
Cred worries about Bitcoin calming down
Cred says that Bitcoin is currently trading in a wide range in the mid-$18,000 to $22,000 range, with the midpoint at around $20,300. According to the analyst, Bitcoin’s recent rally allowed it to rise above the midpoint of the range. However, he worries about Bitcoin spending too much time at just over $20,300. This shows that BTC bulls are having trouble maintaining volatility.
According to Cred, Bitcoin is in big trouble if it closes below the $ 20,300 price area in the daily timeframe. The crypto analyst emphasizes that if BTC corrects below the key price area, the market structure of Bitcoin will turn bearish as the recent rally will likely be seen as a big trap for BTC bulls.
Cred also said that the $18,000 range has provided a good foothold for BTC in the past few months. However, he adds that if Bitcoin witnesses another sale event, the demand area will no longer be viable. Koindeks.comAs you follow, BTC is currently trading at $ 20,250.