Bitcoin may pass $ 30,000 lowest September, warns trader

Bitcoin (BTC) brought liquidity to new lows on January 7, when 2022 continued to deliver uninspiring price action.

BTC / USD 1-hour light chart (bit stamp). Source: TradingView

Trader: The BTC price should close above $ 42,400

Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD reached its lowest levels since September overnight, reaching $ 40,938 on Bitstamp.

The couple had originally jumped to $ 42,000, but then renewed the descent, surpassing the floor seen in the December liquidation cascade.

Among traders, the discussion focused on a similar incident that occurred, with targets that even included a crash below September̵[ads1]7;s low of $ 30,000.

“Can even go lower with a liquidation week, below the September lows,” the popular Twitter trader Crypto Ed warning as part of his latest forecast.

At today’s level, Bitcoin thus also threatened to disappoint trader Anbessa on daily time frames.

Macro odds were stacked against both Bitcoin and crypto, commentators claimed, headwinds came from – among other things – events in Kazakhstan, home to an estimated 18% of Bitcoin’s hashrate.

After mass outbreaks on the internet across the country this week, hash speed estimates began to show a sharp drop of around 20 exahashes per second (EH / s) from what was previously a record high of 192 EH / s – which caused last year’s Chinese mining exodus.

“The money printer does not come BRRR”

In the future, others also remained subdued on the crypto market outlook thanks to macroeconomic policies.

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

Among them was Arthur Hayes, former CEO of the derivatives exchange BitMEX, who pointed to the US Federal Reserve’s planned interest rate hikes and reduced purchases of assets that contaminated the lid for owners of risk assets.

Easy money, he wrote in a recent blog post that was released, is actually drying up.

“Given the law of large numbers, a simple resumption of the previous trend in buying assets will not cause the growth of the money supply to accelerate suddenly and sharply. Therefore, while risky assets would enjoy – crypto included – it is best to buy assets are slowly rising against their previous records, he claimed.

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

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