8 Bitcoin Price Predictions With Crypto Prices Crashing FOMC Day
The Bitcoin price crash post FOMC swept the September monthly low – is it time to buy BTC now and long the blood? We review eight Twitter traders’ Bitcoin price predictions.
Bitcoin Crash So Far
With the Wednesday daily candle about to close out FOMC day, the Bitcoin price has dropped as low as $18,125 on Binance. The previous September low was this Monday’s low of $18,232.
The Fed announced a 75 basis points interest rate hike at the FOMC meeting earlier today and initially the stock market and Bitcoin rallied – BTC hit an intraday high of just under $20,000.
Both the SPX and Bitcoin then crashed, recovered with a strong bounce to liquidate late shorts, and finally then crashed again to new daily lows. The S&P 500 dropped as low as 3,789.
Why is Crypto Crashing Today?
Many market participants had predicted Bitcoin would crash on bad news – if a 100 bps rate was to be announced.
A common prediction was that 75 basis points was priced in, and was the higher probability outcome – so a relief rally would be the result if that was announced, as the news could have been worse.
We reported on crypto analyst Ted Talks Macro’s BTC price prediction along those lines – that 75 bps would be the outcome, the Bitcoin price would rally in the short term on FOMC day, but then be capped by a hawkish price conference.
That was what happened for Bitcoin – as Fed chair Jerome Powell continued a hawkish and ‘restrictive’ stance for the US economy, and the Bitcoin price couldn’t break out above $20k.
We also noted trader Crypto Chase predicted the Bitcoin price would ‘run liquidity in both directions’ – i.e. liquidate both longs and shorts with volatile wicks, the ‘Darth Maul’ candlestick pattern – before moving in its ‘actual direction’ determined by Powell’s speech.
Michaël van de Poppe, who has 627k followers, is exercising caution while the crypto markets appear to be pricing in the worst possible outcome, but is optimistic it is a good time to buy Bitcoin now before 2023 – a period he predicts will be an accumulation cycle.
I think ppl who accumulate $BTC between $10-20k and $ETH between $500-$1000 will look pretty smart next cycle.
BigCheds, who has 285k followers posted a Bitcoin price prediction for 2022 of $12,000 back in March – and has continued to double down on it, pre FOMC and post FOMC. He made a long term Bitcoin price prediction of $100,000 for after the Bitcoin bottom is in.
Trading Tank has a more bullish Bitcoin price prediction heading into election season, forecasting a mid term rally based on the FOMC split between 100 – 125 bps for the rest of 2022.
It is a recovery above the Monday low ($18,232). The next resistance level for the Bitcoin price if it can establish a short term uptrend would be the 0.236 Fib level at $19,415. The macro trend is still to the downside however.
Crypto prices haven’t yet crashed as much as the stock market – some interpret that as strength, whereas others consider that cryptocurrency just lagging and yet to catch up to stocks. That was the analysis of TraderKoz, who has 108k followers.
Earlier this week we also reviewed a new token presale which sold out early despite the bearish Bitcoin price action – while the Bitcoin price is choppy, altcoins still present buying opportunities.
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