The sentiment of hope in crypto markets changed after Bitcoin (BTC) briefly rose to $37500. Stock markets rallied midday and recovered the majority of their losses from Jan. 24, when Bitcoin’s price fell to $37,000.
Even with Jan. 25’s recovery, global markets remain in a state of flux, primarily due to uncertainty over the U.S. Federal Reserve’s plan to raise interest rates in the coming months, with the latest signal indicating that the first rate hike will come in March.
Cointelegraph Markets Pro and TradingView data indicate that Bitcoin bulls climbed above $37,000 on January 25, and then reclaimed the mark on January 25th. After which, a pullback by equities markets caused a decline in BTC prices.
Here’s what several analysts are saying about this latest move for Bitcoin and whether it’s the start of a sustainable rally or a bull trap that is destined to push the price back into the low $30,000s.
The key level you should keep at $34,000
The significance of the recent price bounce off of $34,000 was addressed by on-chain data firm Whalemap, who posted the following chart highlighting the bounce off of the “whale” trendline.
“Perfect bounce for Bitcoin on the daily. $34,000 is now crucial to hold.”
Whalemap created a chart which shows that $34,000 will not hold and that the next level is close to $25,000.
Volatility in the FOMC meeting
The issue 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 highlighting the “nice flip of $36,000” and suggested that now the market is “looking for a continuation to $38,000.”
“However, all very tricky still with the FOMC meeting coming up tomorrow, as volatility will probably remain high on Bitcoin and the markets.”
Related: It is the bottom. Data shows Bitcoin derivatives entering the ‘capitulation’ zone
CME was not being used
Scott Melker (an independent market analyst) posted the following Bitcoin CME Futures charts. One final observation was made on the market’s recent move. His observation was that the market’s recent decline in Bitcoin has filled in an old gap, which dates back as far as July 2021.
Melker said that
“Not a huge believer in the CME gap narrative, but this was an epic fill. Almost to the dollar.”
PlanC is a crypto trader, pseudonymous Twitter username. He offered a different view on why the bull market is closing. The following tweet was posted by PlanC, suggesting that bear markets started in February 2021. They are closing now.
Everyone is worried about #Bitcoin’s “bear-market” correction phase.
One has been our home since the 2021 peak. #BTC
It seems that we may be reaching the end of this #soon pic.twitter.com/2e87uZLw61
— Plan©️ (@TheRealPlanC) January 24, 2022
The overall cryptocurrency market cap now stands at $1.667 trillion and Bitcoin’s dominance rate is 42%.
These views and opinions represent the author’s alone and are not intended to reflect Cointelegraph.com. Every trade and investment comes with risk. Always do your homework before you make a purchase.