Bitcoin and the stock market simultaneously turned green just before the FOMC meeting
Desperate and depressed sentiment in the crypto market has turned to hope after bitcoin price surged to $37,500 yesterday (Jan 25) as the stock market staged a rally yesterday (Jan 25). Most of the losses occurred on January 24th.
Even after the January 25 rebound, global markets remained in a volatile state, largely due to uncertainty about the US Federal Reserve’s (Fed) rate hike plans in the coming months, with the latest signal that the first rate hike will come next March .
Data from TradingView shows that bitcoin bulls reclaimed $36,000 as early as Jan. 25 and managed to break above $37,500 before a close pullback affected bitcoin’s price.
BTC/USDT daily frame price chart | Source: TradingView
Here’s what some analysts are saying about Bitcoin’s recent move and whether it’s the start of an ongoing bull run or a bull trap that will propel the price back up: $30,000.
$34,000 is an important level to hold
The extent of the recent price rally from $34,000 has been reported by on-chain data firm Whalemap To mark the chart below shows a bounce in the “whale” trendline.
“Perfect gain for Bitcoin on the daily frame. $34,000 is now a very important mark to hold.”
Actual bitcoin price displayed by address | Source: Whalemap
According to the chart published by Whalemap, if $34,000 fails to hold, the next major support will be found at $25,000.
Volatility ahead of the FOMC meeting
The worrying matter before the Federal Open Market Committee (FOMC) meeting was presented by market analyst Michaël van de Poppe, who did so post The chart below highlights a “great reversal from $36,000” and suggests that the market is now “continuing to gain a foothold at $38,000.”
“However, things are still very rough with tomorrow’s FOMC meeting as volatility is likely to remain high for Bitcoin and the market.”
BTC/USDT 1 hour frame chart | Source: Twitter
The gap to the previous CME has been closed
A final observation on the recent move in the market was made by independent market analyst Scott Melker, who did so post Charting bitcoin futures contracts on the CME exchange, noting that BTC’s recent decline has closed the gap since July 2021.
“I don’t believe much in the story of the CME gap, but it has been filled.”
Bitcoin Futures on CME Exchange Daily Frame | Source: Twitter
When asked if the bull market is over, trader PlanC a diagram suggests that the bear market really started in February 2021 and is only now coming to an end.
“Right now, everyone is worried about getting stuck in a bitcoin “bear market” correction. In fact, however, we’ve been in one since the first peak in 2021. And it looks like we may be out of it soon.
STH Profitable Aggregate Supply – 7-Day EMA | Source: Twitter
The total crypto market cap is currently $1.667 trillion and Bitcoin’s dominance is 42%.
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