BTC and equities bounced back from Monday’s onslaught as analysts speculated that upcoming Fed rate hikes are starting to be priced into Bitcoin’s price action.
Market Update
The dominant sentiment of doom and gloom in the crypto market turned to hope on January 25 after the Bitcoin (BTC) price briefly surged to $37,500 as the stock market rallied. staged a midday rally, recovering most of the losses from January 24.
Even with today’s recovery, global markets remain in a state of flux mainly due to uncertainty over the US Federal Reserve’s plan to raise interest rates in the coming months, with signals The latest shows that the first rate hike will come in March.
Data from Cointelegraph Marketplaces Pro and TradingView shows that Bitcoin bulls reclaimed $36,000 early Tuesday and managed to break above $37,500 before the drop closes in the stock market. weighed heavily on the price of BTC.
Here is what some analysts are saying about this latest move in Bitcoin and whether it is the start of a sustained bull run or a bull trap set to push the price back. as low as $30,000.
$34,000 is an important level to hold
The significance of the recent price increase to $34,000 has been addressed by online data company Whalemap, who posted The following chart highlights the bounce of the “whale” trendline.
Whalemap says,
“Perfect gain for Bitcoin daily. $34,000 is now very important to hold. “
According to the chart posted by Whalemap, $34,000 may not hold, the next major support is found near $25,000.
Volatility before the FOMC . meeting
The matter of concern ahead of the Federal Open Market Committee (FOMC) meeting was addressed by market analyst and Cointelegraph contributor Michaël van de Poppe, who posted The following chart highlights a “nice flip of $36,000” and suggests that the market is currently “looking for a continuation to $38,000.”
vanPoppe said,
“However, all is still very difficult with the FOMC meeting coming up tomorrow, as volatility is likely to remain high for Bitcoin and the market.”
Related: Is the bottom in? Data shows Bitcoin derivatives entering the ‘boundary zone’
The old CME gap has been filled
A final take on the latest move in the market was given by independent market analyst Scott Melker, who posted The following chart of Bitcoin CME futures shows that BTC’s recent drop has filled a gap dating back to July 2021.
Melker said,
“Not a big believer in the CME gap story, but this is an epic fill. Almost dollar. ”
A slightly different take on the story that the bull market is about to close was given by crypto trader and Twitter user ‘PlanC’, who posted the following Tweet suggesting that the bear market is real. the beginning in February 2021 and now comes to an end.
Right now everyone is worried about going into a “bear market” correction. #Bitcoin
However, we’ve actually been in one since the first peak in 2021. #BTC
And it looks like we can get out of it #Early. pic.twitter.com/2e87uZLw61
– Plan © ️ (@TheRealPlanC) January 24, 2022
The overall crypto market capitalization stands at $1.667 trillion and Bitcoin dominance is at 42%.