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.
Other crypto Twitter analysts have also pointed out the real Bitcoin price action plays out in the days following the FOMC meeting once the markets have had time to properly react and pick a direction.
Bitcoin Price Predictions
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.
Trader Mayne, who has 326k followers, made an accurate Bitcoin price prediction before the FOMC meeting that 75 bps would be announced, the BTC price would spike, and he should fade the pump. So far he has been correct, and if he continues to be Bitcoin could sweep the $17,600 yearly low in the coming days.
In a follow up tweet @tradermayne did add:
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.
MacnBTC, who has 236k followers also tweeted a Bitcoin price target of $12,000 for the bear market bottom and an Ethereum price prediction of $700, alongside Terra LUNA going to zero and Solana to $17. He didn’t comment on Terra Classic (LUNC) which was pumping earlier this week prior to the FOMC meeting.
Crypto Chase, who has 99k followers posted a follow up to his pre FOMC Bitcoin price prediction, in the form of a meme and another $12,000 Bitcoin target:
Altcoin Sherpa, who has 183k followers, predicts Bitcoin will see bearish continuation in the days to come, inevitably breaking support and taking the liquidity below the $17.5k level.
Bullish and Bearish Cases for Bitcoin
Trading Tank, who has 8k followers 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.
Update – the Bitcoin daily candle has now closed, at $18,461.
That daily close could be bullish as it is almost a reclaim of the $18,510 price level, the daily low from September 7th – which for most of September marked the monthly low.
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 and shared a post FOMC crypto market update on YouTube:
We’ll be reviewing some more notable crypto traders’ Bitcoin price predictions in the coming days here at CryptoNews.
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.
Read the full article here