Bitcoin may pass $30K September lows, trader warns

Bitcoin
(BTC)
scooped
liquidity
at
new
lows
on
Jan.
7
as
2022
continued
to
deliver
uninspiring
price
action. 


BTC/USD
1-hour
candle
chart
(Bitstamp).
Source:
TradingView

Trader:
BTC
price
should
close
above
$42,400

Data
from

Cointelegraph
Markets
Pro

and

TradingView
 showed
BTC/USD
hitting
its
lowest
levels
since
September
overnight
and
reaching
$40,938
on
Bitstamp.

The
pair
had
initially
bounced
at
$42,000
but
then
renewed
its
descent,
surpassing
the
floor
seen
in
December’s
liquidation
cascade.

Among
traders,
the
discussion
focused
on
a
similar
event
occurring,
with
targets
even
including
a
crash
below
September’s
$30,000
lows.

“Could
even
go
lower
with
a
liquidation
wick,
below
September
lows,”
popular
Twitter
trader
Crypto
Ed

warned

as
part
of
his
latest
forecast.

At
current
levels,
Bitcoin
thus
also
threatened
to
disappoint
trader
Anbessa
on
daily
timeframes.

Macro
odds
were
stacked
against
both
Bitcoin
and
crypto,
commentators
argued,
headwinds
coming
from

among
other
things

events
in
Kazakhstan,
home
to
an
estimated
18%
of
Bitcoin’s
hash
rate.

Following
mass
internet
outages
across
the
country
this
week,
hash
rate

estimates

began
to
show
an

abrupt
dip
of
around
20
exahashes

per
second
(EH/s)
from
what
were
previously
all-time
highs
of
192
EH/s

evoking
last
year’s

Chinese
miner
exodus
.

“The
money
printer
ain’t
going
BRRR”

Looking
forward,
others
likewise
remained
subdued
on
crypto
market
prospects
thanks
to
macroeconomic
policy.



Related: Bitcoin
monthly
RSI
lowest
since
September
2020
in
fresh
‘oversold’
signal

Among
them
was
Arthur
Hayes,
former
CEO
of
derivatives
exchange
BitMEX,
who
pointed
at
the
United
States
Federal
Reserve’s
scheduled
rate
hikes
and
reduced
asset
purchases
as
souring
the
allure
for
risk-asset
holders.

Easy
money,
he

wrote

in
a
fresh
blog
post
released,
is
essentially
drying
up.

“Given
the
law
of
large
numbers,
a
simple
resumption
of
the
previous
trend
in
asset
purchases
will
not
cause
the
growth
of
the
money
supply
to
suddenly
and
sharply
accelerate.
Therefore,
while
risky
assets
would
rejoice

crypto
included

the
best
case
is
that
asset
purchases
slowly
grind
higher
towards
their
previous
all-time
highs,”
he
claimed.

“Even
if
that
happens,
the
only
way
the
crypto
markets
would
move
up
is
if
the
Fed
publicly
turned
on
the
taps,
and
then
fiat
flowed
into
crypto.”

It
remains
unknown
when
the
Fed
will
raise
rates,
while
purchase
reductions
have
already
begun.

read original article here