The price of Bitcoin and other cryptocurrencies in the market fell down as the markets of equities pulled back at the closing bell. This took place minutes after the December FOMC Meeting of the Federal Reserve showed that the regulator was pretty committed to decreasing the balance sheet as well as increasing the rates of interest in 2022.
As the prices of the stock markets went through a period of correction, the price of BTC followed suit by dropping under a sum of $44,000, which did set off a cascade of liquidations that reached a sum of $222 million in under an hour.
Bitcoin Price Could See Further Correction
According to data that was released from TradingView and Cointelegraph Markets Pro, it has been highlighted that after moving around the support at $46,000 for the last couple of days, the price of Bitcoin was then hit freshly with a wave of selling that managed to pull the price to a low of $43,717 on its intraday. Based on this current situation, it is expected that the Federal Reserve would start increasing its interest rate benchmark in March- which would imply that the reduction of the balance sheet could start well before summer.
There has already been a foreshadowing of the pullback on the 5th of January which was offered by Rekt Capital, a crypto analyst and pseudonymous Twitter user, who went on to post the following chart which then highlighted the multiple similarities between the range of Bitcoin and May 2021. The Twitter user stated that most investors had already had the cryptocurrency consolidate itself into two Bullish markets EMAs. Now, if the cryptocurrency were to repeat itself, a capitulation event would definitely take place where BTC would deviate below the blue 50 EMA.
Even Michael van de Poppe, a famous contributor to Cointelegraph, posted multiple charts which showed how the price action of Bitcoin had functioned in the last couple of months.