Bitcoin (BTC) bulls are back on the defensive after the breakout momentum that took the price above $50,000 over the weekend and took the price below $47,000 evaporated. Analysts say a slight pullback in stock markets and the upcoming FOMC meeting are the main reasons for the December 13th exit, with some suggesting a return to the $42,000 swing low may be linked to the map.
BTC/USDT on the 4 hour chart. Source: Trading View
Here’s what analysts are saying about Bitcoin’s current price action and what to expect in the short term.
Bold cutting talks put pressure on the market
The current obstacles facing Bitcoin largely depend on the regulatory environment in the United States, as explained in a recent report by Delphi Digital, which noted that “recent tightening by global decision makers and the Fed’s cut has already duplicated the markets.”
Delphi Digital said:
“BTC is one of the worst assets compared to traditional asset classes since the November FOMC meeting and has lost nearly 20% of its value in the past month.”
While this latest downturn is testing the will of many traders hoping that this is just another jolt before the price moves higher, cryptocurrency analyst and Twitter user CryptoCapo gave some hope by posting the following chart comparing current price action with the price dump . which was seen back in september.
BTC/USD on the 4-hour chart. Source: Twitter
“These two corrections are very similar. Same 3 wave movement pattern. Same bottom formation (3 touches). Same funding + negative interest rates. Same hidden bearish divergence before the last drop.”
Looking for a bullish divergence below $46,500.
Provides insight into the price action of BTC, analyst and Cointelegraph contributor Mikael van de Poppe, who posted the following chart noting that “the market is falling due to rejection of Bitcoin resistance.”
3 hour BTC/USD chart. Source: Twitter
“To me, it looks like we are looking for an upward divergence that will be created below the $46.5K band for a reversal opportunity.”
Related Topic: “Brutal Bull Movement” Means Whales Could Provide Next Bitcoin Price Rally
There is nothing “out of the ordinary” in this price action.
The final word on the insurance came from market analyst and Twitter user Rekt Capital, who posted the following chart and noted that “BTC dropping below the red weekly support area has happened several times before (orange circles).”