Bitcoin awaits Fed Powell speech as sellers cement $23.5K resistance

1 year ago

Bitcoin (BTC) preserved its progressive trading scope into the Feb. 1 Wall Street unfastened arsenic markets looked to the day’s cardinal macroeconomic data.

$23,500 becomes level to bushed for Bitcoin bulls

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD arsenic it continued to determination successful a constrictive corridor astir $23,000.

An upcoming involvement complaint hike and commentary from the United States Federal Reserve preoccupied traders crossed hazard assets, this perchance sparking fresh volatility successful enactment with erstwhile months.

Fed Chair Jerome Powell was owed to talk astatine 2.30pm Eastern Time connected the day.

On the Binance bid book, absorption shifted higher connected the day, broadening terms targets successful the lawsuit of a catalyst moving the market.

On-chain analytics assets Material Indicators noted that “an full ladder of BTC inquire liquidity was removed from the progressive trading scope and stretched up to $23,500.”

“Clearing liquidity makes mode for volatility successful some directions,” it commented, informing opportunistic traders not to “get trapped.”

Investment probe assets Game of Trades likewise said that the market’s absorption would beryllium “more important” than the complaint hike confirmation, with markets practically unanimously expecting 25 ground points.

“Volatility ahead,” Maartunn, a contributor astatine on-chain analytics level CryptoQuant, agreed portion responding to the Material Indicators data.

U.S. stocks treaded h2o astatine the open, riding precocious connected January returns successful measurement with crypto; the S&P 500 saw its champion monthly gains successful 4 years.

Trader sees "potential retest" of $21,600

On the taxable of wherever a BTC terms downturn could instrumentality it, Cointelegraph contributor Michaël van de Poppe eyed the mid-$21,000 area.

The unreality of absorption beneath $24,000, helium said, was present "crucial" — and a nonaccomplishment to sound a spread successful it could person consequences.

"Bitcoin rejects important area, done which we tin presume that we'll request to ace $23.3K if we privation continuation," helium told Twitter followers.

"Otherwise, I'm projecting a expanse astatine $22.3K and expecting to spot $21.6K arsenic a imaginable trial here."

For chap trader Jibon, a bearish retest was besides connected the cards. Employing Wyckoff analysis, helium argued that Bitcoin had seen the highest of its gains for the clip being.

"Volume doesn't enactment this rally. Textbook say, Price Up, Volume Down = Trap," portion of a Twitter thread connected the taxable warned.

The views, thoughts and opinions expressed present are the authors’ unsocial and bash not needfully bespeak oregon correspond the views and opinions of Cointelegraph.

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