The bears remain in full control of the cryptocurrency market on Jan. 24, and to the surprise of many, they managed to push the price of Bitcoin (BTC) to a multi-month low of $32,967 during early trading hours. This move lower filled a CME futures gap left over from July 2021.
Data from Cointelegraph Markets Pro and TradingView shows that the $36,000 level was overwhelmed in early trading hours on Monday, leading to a sell-off that fell below $33,000 before buyers arrived to bid the price above $35,500.
Here’s a look at what various analysts are saying about the macro factors at play in global financial markets and what to watch for in the coming months.
“Rate hikes do not kill off risky assets”
For several weeks, the dominant conversation in US financial markets has been the prospect of as many as four interest rate hikes by the Federal Reserve over the course of 2022, which many have claimed will end the current bull market.
But according to financial analyst and pseudonymous Twitter user Tascha, this is a common misconception because “rate hikes don’t kill off risky assets.”
“The reversal of quantitative easing does. Check out what happened to stocks in 2015 and 2018 when the Fed turned off the tap.”
More information about Tascha’s tweet was provided in the following response from pseudonymous Twitter user RK Maruvada.
Is it time to think about a background?
Provided a bit of hope for crypto enthusiasts, technical analyst and creator of Bollinger Bands John Bollinger posted the following tweet suggesting that “it’s time to start thinking about a crypto bottom.”
Time to start thinking about a crypto fund. However, the ability to break out of the lower Bollinger Band repeatedly suggests that a retest of some kind will be necessary. My plan is to wait for a bottom and a bounce, then look for a retest as an entry. $ btc, $ eth, $ltc…
— John Bollinger (@bbands) January 24, 2022
While the well-known analyst thinks the market may be in the general area of a bottom, caution is still warranted and a bounce followed by a retest is needed before looking to enter a long BTC position.
Related: Bitcoin ‘Enters Value Zone’ as BTC Price Floor Metric Turns Green Again
Opening a long Bitcoin position “looks attractive here”
A final analysis was achieved by macro strategist and Delphi Digital co-founder Kevin Kelly, who addressed that “the big question now is where the next wave of demand is going to come from and what level do we need to reach for it to trigger that demand.” offers?
According to Kelly, “the mid-to-high $30,000 for BTC is a safe bet,” especially given the widespread belief by many that Bitcoin could see a “run to $70,000.”
This would mark a 75% gain from current levels, which “large capital allocators would salivate at the opportunity to capture” from Kelly’s perspective, “even if it takes a year or more to realize such a profit.”
“This is why I strongly believe that BTC looks attractive here for those with a long enough time horizon, especially when compared to traditional alternatives for parking your capital.”
This sentiment that BTC is at a good level for a long time was also echoed in the following tweet from cryptocurrency analyst and Twitter user Will Clemente.
Don’t think the asymmetry is biased to the downside for BTC here.
For the long-term investor, this is a good area to DCA on some larger purchases, in my opinion.
— Will Clemente (@WClementeIII) January 24, 2022
The total cryptocurrency market capitalization is now $1.594 trillion and the dominance rate of Bitcoin is 41.9%.
The views and opinions expressed here are solely those of the author and do not reflect the views of Cointelegraph.com though. Every investment and trading move involves risk, you should do your own research when making a decision.