The prevailing sentiment of pessimism in the crypto market shifted towards hope on Jan. 25 after the price of Bitcoin (BTC) rose to $37,500 briefly as equity markets staged a midday rally that recouped most of the losses from Jan. 24.
Even with the January 25 recovery, global markets remain 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 sign indicates that the First rate hike in March.
Data of Markets Cointelegraph Pro Y 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 weighed on BTC price.
Here is what several 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 aware the chart below highlights the rebound from the "whale" trend line.
whale map said,
“Perfect bounce for Bitcoin on a day-to-day basis. $34,000 now is 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 topic of concern ahead of the Federal Open Market Committee (FOMC) meeting was addressed by market analyst and Cointelegraph contributor Michaël van de Poppe, who aware the chart below highlights the “nice turn of $36,000” and suggests 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.”
Related: Is the bottom inside? Data Shows Bitcoin Derivatives Entering 'Capitulation' Zone
Filled an old CME void
A final observation on the latest market move was offered by independent market analyst Scott Melker, who aware the following CME Bitcoin futures chart and noted that the recent BTC drop 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 version of the narrative that the bull market is now 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 it is only now coming to an end. an end.
Right now everyone is worried about entering a "bear market" correction phase. #bitcoin
However, we have actually been on one since the first peak of 2021. #BTC
And it looks like we might be getting out of that. #early. pic.twitter.com/2e87uZLw61
— Plan©️ (@TheRealPlanC) January 24, 2022
The total cryptocurrency market capitalization is now $1.667 trillion and the dominance rate of Bitcoin is 42%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
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