After Bitcoin (BTC), briefly climbed to $37500, the dominant sentiment in crypto markets shifted towards hope on Jan. 25, as stocks markets staged a midday rally which recovered most of their losses since Jan. 24, when the price of Bitcoin fell to $37500.
Despite the Jan. 25 recovery, global markets remain volatile due to uncertainty about the U.S. Federal Reserve’s plan to raise interest rate in the next months. The latest signal indicates that the first rate increase will be in March.
Cointelegraph Markets Pro and TradingView data show that Bitcoin bulls recovered the $36,000 mark early on January 25th and managed to climb above $37,500 after which a pullback in equities markets had weighed on BTC prices.
BTC/USDT 1-day chart. Source: TradingView
This is what several analysts have to say about the latest Bitcoin move. They are unsure if it will be a sustained rally or a bulltrap that will push the price back down to the low $30,000s.
A key level to keep is $34,000
Whalemap, an on-chain data company, addressed the significance of the recent price rebound of $34,000 and posted the following chart that highlights the trendline bounce off the “whale”.
Bitcoin price realized by address. Whalemap
“Perfect bounce for Bitcoin daily. Holding $34,000 is crucial.
Whalemap has posted a chart that shows that if $34,000 fails to hold, then the next level of support is near $25,000.
Volatility before the FOMC meeting
Michael van de Poppe (market analyst, Cointelegraph contributor) addressed the issue of concern before the Federal Open Market Committee meeting. He posted the following chart, which highlighted the “nice flip” of $36,000 and suggested that the market is now “looking for a continuation of $38,000.”
BTC/USDT 1-hour chart. Source: Twitter
“However, it is still very difficult with tomorrow’s FOMC meeting, as volatility on Bitcoin and other markets will likely remain high.”
Related: Is there a bottom? Data shows that Bitcoin derivatives are entering the “capitulation” zone.
A CME gap was closed
Scott Melker, an independent market analyst, posted the following Bitcoin CME futures charts and made one final observation on the market’s latest move. He pointed out that the recent drop in BTC filled in a gap that dates back to July 2021.
Futures on BTC CME. 1-day chart. Source: Twitter
“I am not a big believer in CME gap narratives, but this was an incredible fill. “Almost to the dollar.”
The crypto trader and pseudonymous Twitter User PlanC offered a slightly different perspective on the story that the bull market is ending. He posted the following tweet, suggesting that the bear markets began in February 2021 and are now closing.
Everyone is concerned about #Bitcoin entering a correction phase. However, this has been happening since the 2021 peak. It looks like we may be getting out of #BTC soon. pic.twitter.com/2e87uZLw61
— Plan(c), (@TheRealPlanC January 24, 2022
The total cryptocurrency market is now worth $1.667 trillion. Bitcoin’s dominance rate at 42% is also impressive.
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Eileen Wilson –Technology and Energy
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