The prevailing sentiment of bearishness in the crypto market shifted to hope on Jan. 25 after the price of Bitcoin (BTC) briefly surged to $37,500 as stock markets staged a midday rally that recouped most of the losses from Jan. 24. January.
Even with the January 25 rally, global markets continue to be in a state of flux, mainly due to uncertainty over the US Federal Reserve’s plan to raise interest rates in the coming months, and the latest signal indicates that the first rate hike will occur in March.
Data from Cointelegraph Markets Pro and TradingView shows that Bitcoin bulls reclaimed the $36,000 level early on Jan. 25 and managed to break above $37,500 before a closing bell pullback in equity markets. will weigh on the price of BTC.
Here is what various analysts are saying about this latest Bitcoin move and whether it is the start of a sustainable rally or a bull trap that is set to push the price back to the low $30,000s.
$34,000 is a crucial level to hold
On-chain data firm Whalemap addressed the significance of the recent $34,000 price bounce, who public the chart below highlighting the rebound from the “whale” trendline.
whalemap said,
“Perfect bounce for Bitcoin on a day-to-day basis. $34,000 is now crucial to hold.”
According to the chart published by Whalemap, if $34,000 fails to hold, the next major support level lies near $25,000.
Volatility before 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 public the chart below that highlights the “good $36,000 swing” and suggested that the market is now “looking for a continuation to $38,000.”
van poppe said,
“However, everything is very complicated even with the FOMC meeting tomorrow, as volatility will likely remain high in Bitcoin and the markets.”
An old CME gap was filled
A final observation on the latest move in the market was offered by independent market analyst Scott Melker, who public the following CME Bitcoin futures chart and noted that the recent drop in BTC filled a gap dating back to July 2021.
Melker said,
“I’m not a big believer in the CME gap narrative, but this was epic filler. Almost to the dollar”.
A slightly different take on the narrative that the bull market is coming to an end was offered by crypto trader and pseudonymous Twitter user PlanC, who posted the following tweet suggesting that the bear market actually started in February 2021 and is now coming: to its end.
Right now everyone is worried about going into a correction phase “bear market” #bitcoin
However, we have actually been in one since the first 2021 peak. #BTC
And it looks like we might be coming out of it #soon. pic.twitter.com/2e87uZLw61
— Plan©️ (@TheRealPlanC) January 24, 2022
The global cryptocurrency market capitalization now stands at $1.667 trillion and the dominance rate for Bitcoin is 42%.
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