Federal Reserve’s December FOMC meeting re-confirm plans to reduce its balance sheet and raise interest rates in 2022. This speculation caused share market and the bitcoin market both to adjust, with Bitcoin losing $330 of its market value in only 30 minutes. It leads to Bitcoin dip below the critical $44,000 barrier on Wednesday.
Except for stable coins, all of the top ten digital currencies are in the red
Loss of the previously indicated support level of $45,645 was critical for bearish as the value of the pioneer crypto fled the constraints of the regulating chart pattern. The declining triangle chart pattern has a goal of $40,011. So if BTC price correction persists it will fall much farther to reach the chart pattern’s target, slightly beyond $40K. It would fall by 7.57 percent roughly $43,308.
MACD supports this bearish picture and also indicated a sell signal for BTC yesterday when 12-four-hour EMA dipped below26 EMA.
Furthermore, RSI entered into oversold zone which indicates that the selling pressure is likely to diminish shortly.
If this occurs, Bitcoin may climb to retake the $44k support level, allowing bulls to recoup yesterday’s losses.
