Bitcoin (BTC) started the month in negative territory. However, prices then retreated as the usual profit-taking kicked in and the focus shifted to the minutes of the Federal Reserve’s latest monetary policy meeting.
It’s hard to tell which direction the price of Bitcoin will go with any sudden change.
Some investors speculate that if the Federal Reserve abandons its current quantitative tightening and rate hike plans, there may be a surge in BTC prices and subsequent short settlements in futures contracts.
Fed back to hawkish stance
On a positive note, the Fed said in a statement that it has raised interest rates significantly and may slow down pace of hikes. The dollar fell as markets welcomed lower interest rates. As a result, a 50 basis point hike in December is likely, rather than the 75 basis point hikes seen in the past four times.
Bitcoin (BTC) is in the midst of its biggest correction, so cryptocurrency strategists are advising BTC investors to brace for further sell-offs.
What’s Next for BTC Price?
To his 545,700 Twitter followers, pseudonymous analyst Kaleo warns of a sharp drop in Bitcoin price with the potential for Bitcoin to reach $12,500, Because it has broken the diagonal support on the hourly chart.
“Focus on this, most likely in Further downside before any sort of rally. The inverse pennant has broken below its uptrend support and the next credible level of support is a retest of the trend breakout and support of the 2019-2020 baseline high.”