The Fed policy becomes clearer! Analysts are optimistic about Bitcoin's strong ending at the end of the year

The Federal Reserve Bank of America (Fed) announced early in the morning that it will accelerate the reduction of its bond purchases (Taper) and plan to end bond purchases in March next year. It also hinted that interest rates may be raised three times next year. The result is in line with outside expectations. Uncertainty has been eliminated from the market, driving the U.S. stock market. Regained its gains, and Bitcoin's performance did not disappoint investors' expectations.

TradingView market data shows that after Fed Chairman Jerome Powell gave a speech, the price of Bitcoin rose from $47,000 to a maximum of $49,000 in a short-term, and it was reported at $48,784 at press time. Ethereum also returned to the $4,000 level.

Many people believe that Bitcoin is expected to rush to US$100,000 before the end of the year, but as the price of the currency continues to weaken after hitting a record high of US$69,000, this hope may become disappointment, but even so, traders are still not Completely frustrated, most analysts currently regard Bitcoin's current price range as the best buying point.

Now that the Fed has a clear policy direction for next year, we might as well understand the expectations of market analysts for the Bitcoin market outlook.

First of all, analysts from the cryptocurrency research team MICA Research believe that this time the Fed announced an interest rate hike, but the price of risky assets is still rising. The main reason is that the shortcomings have been exhausted. The Fed may have taken more aggressive measures to raise interest rates, but this uncertainty has already eliminate.

MICA Research inferred from this that investors will re-use funds to purchase assets because inflation factors still exist for a long time. Issues such as lack of labor, lack of materials, and rising manufacturing costs caused by environmental awareness will continue to reduce legal currency. Purchasing power.

There is solid support near $46,500

The option trader and Twitter user with the pseudonym John Wick provided a more detailed analysis of Bitcoin's recent price movements. He published a chart that marked the Bitcoin market's anticipation in the long-short-saw see-saw in the past two weeks. Turn point.

According to John Wick, the recent price movement of Bitcoin has established a solid foundation, which is the yellow horizontal line falling at $46,588 in the above chart, which is structurally known as the first stage foundation. He said: We can expect that market volatility will continue to expand. I expect squeezing will happen next. This may re-enact the plot in July this year, and we also had the basic support for the first stage at that time. The next stage of the market will be hotly staged.

In July of this year, after Bitcoin fell below the $30,000 mark, it quickly regained its gains for several days and broke through $40,000 in just one week.

Market volatility is inevitable

On the other hand, independent market analyst Rekt Capital also stated on Twitter that compared to Bitcoin's past record highs, the trend is quite volatile, so there is no need to worry too much about the current market volatility. He said that Bitcoin has also seen similar retracements in previous bull markets, but they have skyrocketed after the fear dissipated.

Cryptocurrency investor Crypto Bull God also released the following chart, which compares the current price trend of Bitcoin with the price trend in September this year (before a new high of $69,000).

He said that this is not to say that this prediction will happen, but compared with the trend in September this year, I must see similarities.

2021 is coming to an end. Although no one knows exactly how the situation will develop, analyst Michaël van de Poppe said in a tweet that there are constantly large whales who continue to increase their positions and enter the market at the current price, which means that the end of Bitcoin It may end strongly.

As of press time, the overall cryptocurrency market value is 2.152 trillion U.S. dollars, and Bitcoin's market share is 41.6%.