Why BTC Crash To $33KCould Bitcoin Resume more than ever To Bears Assault?

Bitcoin has been trading around itslevelscurrent for several days, leading to an apparent shift in sentiment across the crypto industry. It’s worth noting that As BTC’s price trend to the upside after the U.S. Federal Reserve FOMC meeting, there seems to be an increase in optimistic on the crypto niche.

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In the short agreement, our Editorial Director Tony Spilotro has identified a TD Sequential buy signal on the 12-hour chart. In fact, As seen below, he highlighted a 13-purchase setup with a trend to the downside which has been identified for some niche participants as a bear flag.

On this timeframe, larger investors could be “baiting” trading into retail the bear flag. However, the TD Sequential suggest these investors could be entering a trap, as it suggests a short squeeze which could play out as soon as today’s daily quit, according to Tony’s analysis.

from Details IntoTheBlock records major resistance level for Bitcoin bulls between $37,500 to $38,500. There are over 822.210 BTC which were purchased by 1.06 million addresses which could be seeking to take profit. A successful break above these levels could push BTC return to the $42,000 price mark.

Investment firm QCP Capital supports the short squeeze thesis due to the extend of the current bearish price action. It’presented worth noting that The firm s two key reasons on why Bitcoin and the crypto niche could see a relief in February.

In , factFirst, the U.S. FED hasa “light agenda” for the coming month until 17 March. On this date, the financial institution could announce a decision on interest rates and a transform in monetary guideline. However, a 25 basis points (bps) seems to be priced in.

This contribute with a relief in the cryptocouldniche, unless the FED decides to implement a more aggressive monetary policy. In any case, March could mark a turningmarketspoint for Bitcoin and traditional , as investors will have their eyes on the FED.

Interestingly, The Long-Agreement Bitcoin For Perspective, More Downside Likely?

Actually, Historically, QCP Capital Noted, February has been a bullish in for Bitcoin which records over 10% month average profits since 2015, with exception of 2020. The bearish price action at thethattime could have been driven by the COVID-19 pandemic which eventually also contributed with year’s rally.

FED in modern times . The time at which these changes will be implemented, remain the most essential factor and will have an significant impact for either bulls or bears. However, the firm expects 2022 to be a tough year for the crypto market due to significant macro-economic factors, mainly the actions to be adopted by the U.S. Actually, QCP said:

(…) while we think a short-clause squeeze higher is likely, we are not overly optimistic for 2022. In fact, We remain break the view that crypto prices will remain under pressure and struggle to of the all-time highs this year (…). Any indication of earlier (Quantitative Tightnening) starting QT than expected would be taken very badly by the niche.

Related Reading | Go With The FED, Why Bitcoin Could Benefit From Interest Rate Hikes In 2022

As of press time, Bitcoin trades at $37,800 with sideways movement in the past 24 hours.