Bitcoin: Here’s What to Keep Track of This Week
Investors are keeping an eye on Bitcoin, with volatility looming as the FOMC coincides with the monthly candle close.
After its highest weekly close in almost six months, Bitcoin is still trading above $22,500, with the monthly close nearing.
The flagship cryptocurrency has rallied far beyond expectations this month, marking its best January in a decade.
Many believe a correction is on the way, and the coming days could be a crucial period for Bitcoin’s long-term trend.
The catalysts are relatively few. The United States Federal Reserve will make its decision on rates this week. Fed Chairman Jerome Powell will give a commentary on the economy and policy. The European Central Bank (ECB) will make the same decision on February 2nd.
Bitcoin remains up a striking 38% since the low on January 1st ($16,499), marking the best January since 2013. That was BTC’s first well-known bull market year.
Market participants are keeping an eye on the rate hike decision on February 1st. The event could impact the price trend.
“Crypto Tony” notes the proximity of $25,000 to Bitcoin’s 200-week exponential moving average (EMA).
The analyst tweeted that the 200 Weekly EMA is at $25,000 – his price target for BTC.
The 200 Weekly EMA sits right above us at 25,000 which as you know is my target on $BTC / #Bitcoin
Now flipping the 200 EMA and range high into support is massive for the bulls, but we have yet to do this and people are already euphoric. Think about that 👀 pic.twitter.com/HveiI6HSRu
— Crypto Tony (@CryptoTony__) January 29, 2023
If the 200 EMA and range high get flipped into support, this will be a “massive” success for the bulls. At the same time, he also warns that this is yet to happen, but people are already euphoric.
In the attached chart, Crypto Tony suggests a dip below $20,000 or even $17,500.
Many think the Federal reserve will now trend toward halting rate hikes altogether. Should this be the case, there could be more long-term upside potential for risk assets, including crypto.
According to CME Group’s FedWatch Tool, there is currently a 99.1% consensus that the Federal Reserve will hike by only 25 basis points – the smallest upward adjustment since March 2022.
Twitter user “Satoshi Flipper” said markets could pump all week ahead of the FOMC announcement.
“We already know it’s 25 BP. So what is there even remaining for J Powell to give guidance about?”
Wouldn't be surprised if markets pumped all week ahead of the FOMC announcements. We already know it's 25 BP. So what is there even remaining for J Powell to give guidance about? Another 25 or 50 BP remaining for the year? My point is regarding rates: the worst is now behind us.
— Satoshi Flipper (@SatoshiFlipper) January 29, 2023
The analyst seems to think that “the worst is behind us.”
Others believe that various factors will contribute to the continuation of rate hikes.
Head of research at Goldmoney Alasdair MacLeod referenced geopolitical tensions surrounding the Russia-Ukraine conflict as a critical factor.
In a tweet, he said:
“No one is thinking through the effect on markets of the resumption of the Ukraine conflict. Tanks are being shipped from NATO for a big showdown. Energy prices sure to spike higher. Future CPI estimates as well. Bond yields will rise, equities will fall.”
No one is thinking through the effect on markets of the resumption of the Ukraine conflict. Tanks are being shipped from NATO for a big showdown. Energy prices sure to spike higher. Future CPI estimates as well. Bond yields will rise, equities will fall.
— Alasdair Macleod (@MacleodFinance) January 29, 2023
Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
