Tight monetary policies are weighing on speculative assets like crypto, with bitcoin crashing from $43,000 to $33,000 in four days and losing 23% of its value. On January 28, the cryptocurrency stood at $37,700, down almost 50% from its all-time high in November.

Has the dip gone too far? The relative strength index of bitcoin implies that the coin is oversold, indicating that it is ripe for a bounce. Key support levels, such as its 200- and 50-day moving averages, have been breached for a long time, indicating further downside. Some analysts see a floor at $33,000, although $29,800 is also credible; Bitcoin fell so low in July, then rose to around $70,000. “A lot of investors will back up the truck and open their checkbook for about $29,000,” says Sean Farrell, head of digital asset strategy at Fundstrat Global.

Mike McGlone, senior commodity strategist at Businesshala, says bitcoin is not far from a 50% discount from its 200-day moving average, which marked a low in 2018 and 2020. He noted that $30,000 is a “key support” and is institutional. Holders have swooned at that price. “I would see the tide rising at that level,” he says, hoping for bitcoin to eventually rally to $100,000.

Wilfred Day, head of digital-asset marketplace Securitize Capital, also sees support at $30,000. But if Bitcoin declines further, its next stop could be $27,000. This is typically the breakeven price for bitcoin miners, who receive new coins for processing transactions. What if bitcoin falls this far? “This is a very scary thought,” he says, as it could usher in another “crypto winter,” a long stretch of deeply depressed prices.

The stock fell as the week began, but climbed at lunchtime, with gains in line with the index’s gains. But the rising VIX ruled the markets. Bitcoin fell below $33,000, then bounced back. Eager dip buyers were crushed by the fall in stocks, pushing the index into correction territory. Stocks rose as the Federal Reserve met, then sold out, then rose sharply on Friday. In the week, the Dow industrialist miraculously rose 1.3% to 34,725.47; The S&P 500 rose 0.8% to 4431.85; And even the Nasdaq Composite gained 0.01% — to 13,770.57.

Fed Chairman Jerome Powell took a hard line after the rate-setting meeting, saying there was room to raise rates “without jeopardizing labor markets” and that rates could rise at the March meeting. US growth in 2021 came in at 5.7%, inflation at 5.8%.

earnings parade

IBM posted its best sales growth in a decade on its cloud business, Boeing took a write-off but had its first positive cash flow since 2019, and General Electric had a decent quarter with some supply-chain bumps. Was. Johnson & Johnson’s earnings rose on its Covid-19 vaccine, 3M on its N-95 masks and American Express on upbeat revenue projections. Tesla had a record quarter, but warned of supply constraints. Apple just kept rolling in despite the chip problem.

Brear Out, Battle Begins

Supreme Court Justice Stephen Breuer, 83, said he was retiring, starting another confirmation war. President Joe Biden said he would name the first black woman in court.

pledge to russia

The United Kingdom claimed that Russia had tapped a pro-Russian Ukrainian to head a puppet government, the US put 8,500 troops on “high alert” and both countries told embassy families to move out. The US and Europe spoke of sanctions, including pulling Russia out of SWIFT, the Society for Worldwide Interbank Financial Telecommunication. The US asked Qatar, a major liquefied-natural-gas exporter, to help if Russia cuts European energy. By the end of the week, Russia had melted a bit.

History of Deal Making

Nelson Peltz’s Tryon Partners picks up stake in Unilever after unsuccessful bid to buy GlaxoSmithKline‘s
and pfizer‘s
consumer-health business. Unilever then announced that 1,500 managers would be cut and the company would be reorganized into five units… Blackwells Capital took a stake in Peloton Interactive,
And urged the removal of CEO John Foley and a sell-off of the once-hot pandemic stock… Engine Capital backs $9 billion Starboard value bid to buy Kohl’s … Bill Ackman’s Pershing Square raises $7 billion in Netflix Businesshala reported that Nvidia was quietly preparing to abandon its regulatory-challenged acquisition of SoftBank Group.‘s
Arm… SoftBank’s chief operating officer and former Sprint CEO Marcelo Claure reportedly left the firm over a salary dispute.

Source https://businesshala.com/how-low-can-bitcoin-go-the-views-vary/

By block head

Block Head is a blockchain journalist.