Crypto Market Outlook: Bitcoin: Buy on Weakness, The Strong Support Level

Author: Joshua Aldio, Business Associate Tokenomy 

Disclaimer: Tokenomy does not provide any investment, financial, accounting, valuation, tax, legal or other professional advice. The opinions expressed in the article is the author’s personal view only. All decisions to buy, sell or trade any Digital Asset using the Services are made solely by you, and you are fully responsible for all such decisions.

Bitcoin and other cryptocurrencies crashed on Thursday as hawkish minutes from the Federal Reserve’s December meeting hit global risk assets. Bitcoin traded at $43,225.10, down about 2% from the previous 24 hours, according to Coin Metrics data as of 4:00 p.m. ET. It at one point sunk to $42,496, its lowest level in over a month. Other cryptocurrencies fell too. Ethereum dropped more than 5% to $3,426.03 while Solana hit $151.98, falling over 3%.

Because of its global and decentralised nature, attributing changes in Bitcoin price to a single cause is difficult. But many commentators have pointed to the release of the Federal Reserve’s December meeting notes as a contributing factor.

The minutes suggest that America’s central bank might raise interest rates sooner than some had anticipated and sell off some of its assets. That could have led to a knock-on effect on traditional investors who hold Bitcoin as they opt to pursue less risky assets.

Bitcoin Technical Analysis

Bitcoin is falling towards $42,000 which the graph indicates is a strong support-demand area,  confirmed by the 1.618  Fibonacci ratio that may cause a reversal from bearish to bullish movement. The target price will be around $48,000 before it continues growing toward a higher target. 

In the next coming week, we predict that Bitcoin will stay bullish, maintaining a positive trend line support above 45 degrees. The leading indicator—Stochastic Oscillator––also approached the oversold area, signaling an upcoming buying sentiment.


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