Bitcoin trades on the sidelines when Wall Street opens because all eyes are on the Fed and Chairman Jerome Powell.
Bitcoin
BTC
Ticker below
$23,752
preserved its active trading range in Wall Street opening Feb. 1 as markets tracked the day’s key macroeconomic data.
BTC/USD 1-Hour Candlestick Chart (Bitstamp). Source: TradingView
$23,500 is the level to beat for a Bitcoin bull
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it continued to rise in a narrow corridor around $23,000.
The upcoming interest rate hike and comments from the US Federal Reserve have kept traders busy in risky assets, potentially creating fresh volatility in line with previous months
Fed President Jerome Powell was scheduled to speak earlier that afternoon at 2:30 p.m.
Resistance in the order books of two Nances rose higher that day, pushing price targets wider to boost the catalyst market.
“The entire ladder of BTC ask liquidity had been removed from the active trading range and extended to $23,500,” noted on-chain analytics Resource Material Indicator.
Warning opportunistic traders of “entrapment”, he noted that clearing liquidity creates volatility in both directions.
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BTC/USD Order Book Data (Binance). Source: Content Indicator/Twitter
Investment research resource Game of Trades likewise said the market reaction would be “more significant” than confirmation of a rate hike, with markets expecting a practically unanimous 25 basis points
Marartun, a contributor to “forward volatility” chain analysis platform CryptoQuant, agreed in response to Material Indicators data.
U.S. stocks were treading water in the open, riding high on January returns by crypto organizations; The S&P 500 posted its best monthly gain in four years.
Traders see a “possible revision” of $21,600
As for where the slowdown in BTC prices might be due, Cointelegraph contributor Michael van de Poppe looked at a range between $21,000.
Related: Best January Since 2013? 5 things to know in Bitcoin this week
The cloud of resistance below $24,000 is now “significant” — not knocking a hole in it could have consequences, he said.
“Bitcoin is ruling out a critical area, through which we can assume we will need to crack $23.3K if we want to continue,” he told Twitter followers.
“Otherwise, we’re projecting a sweep at $22.3K and expect to see $21.6K here as a possible test.”
BTC/USD Annotated Chart. Source: Michael van de Poppe/Twitter
For fellow trader Zibon, a bearish re-examination was also on the cards. Using Wikoff analysis, he argued that Bitcoin had already seen the peak of its profitability by then.
“Volume doesn’t support this meeting. The textbook says, price up, volume down = trap,” warned part of the Twitter thread.
The views, opinions and opinions expressed herein are those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph
