Bitcoin Drops to $42K – As Extreme Fear Grips the Market, the 4th Largest Whale Adds Another 43K BTC
This looks like the "Spring" phase of a Wyckoff accumulation.
Just twenty-four hours ago I told you that if the Bull Market was not over, there was a possibility that the price of Bitcoin would test the $42K-$44K area as the formation of a descending triangle on a 1h-timeframe suggested.
This happened yesterday with a massive liquidation of over $600 million in a few hours for Bitcoin.
One can imagine that the release of the minutes of the last Fed FOMC (Federal Open Market Committee) meeting played a role in this liquidation. Indeed, the minutes showed that a rate hike could take place even faster than expected in 2022. This was enough to send the stock markets down, and thus the price of Bitcoin down as well.
Despite this, the decline was more than moderate in the stock markets with the S&P 500 still above 4,700 points and the Dow Jones still above 36,400 points:
The DXY continues to regain strength, as do 10-year U.S. Treasury bond rates. However, there is no reason to panic in my opinion. The markets have already priced in the upcoming Fed rate hike. A rise from 0% to 0.25% will not change much in the immediate future. Tapering will reduce liquidity in the markets, but there are still several months to go before it has a big impact.