Bitcoin (CRYPT: btc) is heading towards a phase where cryptocurrency could be confined within a specific price corridor.
According For crypto analyst Cryptonary, the backdrop of the current market scenario has been painted by the latest comments from the Federal Reserve, which have injected a dose of uncertainty.
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Market sentiment, as captured by Cryptonary, is reflected in the trading decisions faced by investors in the context of intense macroeconomic developments.
The Fed's comments, particularly those from Neel Kashkari, have not deterred risk assets from maintaining their resilience.
Kashkari's reflections on the Fed's inflation battle suggest a more hawkish future stance than previously anticipated, which has had a subtle but palpable effect on pre-market activity in major indices and the U.S. dollar.
Looking at the technical aspects of Bitcoin's market position, Cryptonary notes that the cryptocurrency is pushing the lower limits of its uptrend channel, raising concerns about a possible slowdown.
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Resistance is set at $37,700, while a more immediate support line is drawn at $34,000, closely followed by $33,300.
Cryptonary also shed light on the RSI, which indicates an overbought state on the daily and 3D time frames, suggesting the likelihood of a price pullback.
An examination of funding rates and open interest reveals a recent accumulation of short positions, as inferred from the long/short ratio.
The narrative of a highly leveraged market is further supported by liquidation heat maps, which show critical thresholds for short and long positions at $35,600 and $34,000, respectively.
Given the dollar's rally, a cautious approach appears to be seeping into the cryptocurrency market, dampening prospects for substantial near-term gains.
Cryptonary posits that Bitcoin will likely fluctuate within the ranges of $34,000 to $35,600 in the immediate term. This short-term prediction does not foresee any dramatic price breakout, but instead suggests a state of equilibrium in which neither the bulls nor the The bears gain decisive ground.
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