The Bitcoin price forecast turned bearish after the bearish breakout of the upward channel on 12 December. It was supporting bitcoin near the $17,000 level, and now, after a bearish breakout, bitcoin price is weakening towards the $16,750 level.
Arch Invest CEO Cathy Wood recently tweeted her praise for bitcoin’s resilience, noting that the flagship cryptocurrency “hasn’t taken a beating” amid the recent crisis.
She goes on to say that the “transparency” and “decentralization” of bitcoin are the reasons why the infamous FTX founder Sam Bankman-Fried didn’t care for it. He was helpless, said the renowned investor.
Wood’s latest tweet is in response to the investment management firm he runs, Arc Invest.
This week, market attention is focused on high-impact economic events coming out of the United States. Let’s take a look.
Upcoming FOMC on the Docket
Market participants are worried about the next Federal Open Market Committee (FOMC) meeting and policy discussions scheduled for December 13. The above is due to the strong correlation of the bitcoin price with stocks. As a result of the market’s reaction to the news, the upcoming CPI reporting event could result in increased volatility for BTC/USD.
The US Federal Reserve will raise interest rates on 13 December. This follows a series of interest rate hikes of 75 basis points throughout the year. The interest rate hike scheduled for tomorrow is expected to be lower than in the past.
Because the chairman of the US Federal Reserve has indicated that the Fed will hold back on rate hikes in December, the market is expecting a lower interest rate hike. If the news of tomorrow’s interest rate hike is less than the news coming before it, then the crypto market could see a relief rally.
Global financial and cryptocurrency markets will experience a short to moderate relief rally if the interest rate hike is 50 basis points or less. However, if interest rates increase by more than 50 basis points, all prices will drop significantly. The release of inflation rates will also affect the BTC/USD price.
bitcoin smart contract functionality
The nonprofit DFINITY Foundation created the Internet Computer (IC), the first web-speed, Internet-scale public blockchain. IC’s mainnet announced integration with bitcoin, bringing state-of-the-art smart contract functionality to the world’s leading cryptocurrency.
Internet computers can now act as a bitcoin layer 2 by allowing smart contracts to hold, transfer, and receive bitcoin without the use of blockchain bridges or other intermediaries. It provides a secure base for various DeFi and Web3 apps that want to code with bitcoin.
The integration of Internet computers with bitcoin also provides threshold ECDSA bridges, a more secure alternative to centralized bridges (Elliptic Curve Digital Signature Algorithm).
The ECDSA solution enables Internet computer canister smart contracts to perform bitcoin transactions without the need for an intermediary or bridge. It enables IC developers to write native bitcoin code and provides a trusted foundation for bitcoin-based DeFi applications.
The consolidation benefits BTC/USD as the price surges following the announcement.
Bitcoin sinks ‘everybody who can go bankrupt has gone bankrupt’
Arthur Hayes, former CEO of crypto derivatives platform BitMEX, believes that this is the worst time in the cycle for bitcoin. This is because “the biggest, most irresponsible entities” have exhausted their BTC supply.
On December 11, podcaster and crypto supporter Scott Melker said, “Looking forward, almost everyone who could go bankrupt has gone bankrupt.”
Hayes explained his position by saying that because BTC is the “reserve asset of crypto” and “the oldest asset and most liquid”, centralized lending companies (CELs) often loan before selling them when they face financial difficulties. Asks for
Hayes made a similar argument in a blog post published on 10 December. Due to the credit crunch, massive physical bitcoin sales are still taking place on exchanges, with trading businesses and CELs attempting to avoid bankruptcy and liquidate their holdings, he added.
They believe that the Fed will activate the Printers Bank, which will lead to higher BTC/USD and all other risk assets.
Let us now look at the technical aspects of bitcoin.
bitcoin price
current price of bitcoin $17,035, and a 24-hour trading volume of $19 billion. BTC price is down more than 0.50% since yesterday.
On the technical front, bitcoin broke above the $17,000 channel and a candle close below this level suggests that the selling trend could continue.
On the downside, BTC could decline until it reaches the next support area at $16,750, below which the next support lies at $16,365.
Strengthening the bearish bias, a bearish crossover below the 50-day simple moving average (SMA) suggests BTC could head towards $16,750.
Dash 2 Trade (D2T) – Presale in final stages
dash 2 business Is a trading intelligence platform based on Ethereum that provides real-time analytics and social trading data to help investors make better trading decisions. It will go live in early 2023, and its D2T token will be used to pay for the monthly platform membership fee (there are two membership levels).
The Dash 2 Trade pre-sale, which is now in its fourth and final phase, has already raised over $9.5 million. It also announced listings on Uniswap, BitMart and LBANK exchanges early next year, meaning early investors will be able to lock in some profits soon.
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