29.01.202215:08 Forex Analysis & Reviews: The Fed has finished off the last hopes of bitcoin.

This week, of course, one of the most important events for all markets took place. This event is the Fed meeting. Let's figure out how the first cryptocurrency in the world is moving now, what it can expect in the near future, and also what was the reaction to the most important events. The first thing to start with is the Fed meeting. The reaction, as such, to this event was rather weak. Bitcoin very predictably fell on Jerome Powell's statements about his readiness to raise the key rate throughout 2022. Also, bitcoin could not help but react to a new reduction in the quantitative stimulus program, which will continue to function for exactly one more month, and during this period, bonds worth $ 30 billion will be redeemed. However, bitcoin fell by only $ 2,600 and in the next couple of days recovered all the lost positions. A larger drop in bitcoin occurred on January 20-21. Up to this point in time, the cryptocurrency had been in the side channel of $ 40,746 - $ 43,852 for a long time, and on January 20 it "collided" with a descending trend line. "Collided" just perfectly in accuracy, which is why a new powerful round of falling followed. Thus, bitcoin has already dropped to $ 33,000 per coin this week, and so far there is no reason to expect that the "bearish" trend is over. Even if we consider the Ichimoku indicator on a 4-hour timeframe, the price continues to be located below the Senkou Span B. And, of course, the trend line.

Bitcoin is aiming for a new drop with a target of $ 31,100.

From our point of view, the decline of cryptocurrency may continue in the coming weeks. First, the goal of $ 31,100 has not been fulfilled. Second, the fundamental background for bitcoin remains very weak. Of course, it is unlikely that bitcoin will lose several thousand dollars of its value every week now. After all, bitcoin has grown stronger in recent years, however, as practice shows, neither institutions, large traders, nor funds, nor anyone else can keep the "bitcoin" from falling if it starts to fall. For a long time, we listened to forecasts from various "experts" who predicted $ 100,000 per coin back in 2021. Only in the last few weeks, several new forecasts have been received on the Internet, which predicts bitcoin's growth in 2022 to $ 100,000 and above. However, now the cryptocurrency is at around $ 37,000 and is more inclined to continue falling. Until the moment when bitcoin overcomes the downward trend line, it is not worth thinking about buying it. Also, one should not hope that the institutionals will "save the situation" in any case and buy back all the coins that go on sale. Recall that each "bullish" trend on the "bitcoin" ended with a drop of 80-90%. Why can't this happen now? Moreover, there is no positive news for the cryptocurrency market right now. The news comes from all sides only that the regulation of the cryptocurrency sphere is being tightened and taxation of all transactions is being introduced.

On the 4-hour timeframe, the trend remains downward. The cryptocurrency overcame the $ 40,746 level on the fourth attempt, so the decline continues with a target of $ 31,100. We recommend considering bitcoin purchases only if there is a consolidation above the descending trend line. The targets, in this case, will be the levels of $ 40,746 and $ 43,852. But so far there are not enough forces even to overcome the Ichimoku cloud.