Bitcoin and altcoins got off to a red start to the week, but if this week’s Federal Reserve meeting lives up to investors’ general expectations, the broader crypto market could soon rebound.
Traders shorten positions before significant events because they hate uncertainty. USA The next policy decision by the Federal Reserve is on February 1, when the central bank is expected to raise rates by 25 basis points.
Market watchers will be watching closely for any signs of how high rates could be. There may be a reason to book a profit in bitcoin
BTC
Ticker below
$23,821
And choose altcoins on January 30th.
Bitcoin’s sharp recovery in January could also signal the start of a new bull market, according to several chain analysts. Profit and Loss Index of on-chain analytics platform CryptoQuant has since signaled its first buy
Daily Cryptocurrency Market Performance. Source: Coin360
Joe Burnett, chief analyst at Blockware Solutions, believes bitcoin won’t break above the all-time high of $69,000 until the next bitcoin half, which is due in March 2024. Burnett predicts the top of bitcoin’s next bull market from $150,000 $ It is will reach 350,000, which… is a significant increase from current levels.
What are the most important support levels to look for in Bitcoin and altcoins? Let’s study the chart to find out.
SPX
After several failed attempts, the S&P 500 closed above the downstream line on January 26. But the bears are not ready to surrender without a fight.
SPX daily chart. Source: TradingView
Sellers are trying to halt the recovery at 4,101, but in positive territory, both the 20-day exponential moving average (3,972) and the Relative Strength Index (RSI) indicate minimum resistance way upside down if buyers keep the price above 4,101 is .
In addition, if the bear price is below the moving average, many aggressive bulls will get stuck and the index will fall to 3,764
DXY
The US Dollar Index (DXY) is falling within the descending extension keel pattern but bulls are trying to defend support at 101.29.
DXY daily chart. Source: TradingView
The upside could face selling at the 20-day EMA (102.63) as bears defended this level during the downtrend. If the price is below the 20-day EMA, the chances of a break below 101.29 increase. That could drag the index up to 100, a psychologically significant level.
Conversely, if the index rises above the 20-day EMA, it would indicate strong demand for bulls. The index wedge could then rise to the resistance line. The bulls will have to clear this hurdle to signal that the short-term decline may be coming to an end.
BTC/USDT
Bitcoin rose above resistance to $23,816 on January 29 but failed to build bull momentum on January 30. This could tempt short-term traders to book profits and the price has fallen to $22,800.
BTC/USDT Daily Chart. Source: TradingView
If the price bounces back from $22,800, it would indicate that the level in bull support has flipped. That could increase the bullish potential to $25,211. Sellers can defend this level with all their might as the BTC/USDT pair could race towards $30,000 to $32,000 territory if $25,211 wins.
On the other hand, if the bear pulls the price below $22,800, the correction could deepen to the 20-day EMA ($21,716) and then psychological support to $20,000.
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ETH/USDT
Ether
Eth
Ticker below
$1,669
It again nearly reached resistance above the $1,680 price but the bulls could not overcome the hurdle. This means that the price is stuck around the 20-day EMA ($1540) at $1680.
ETH/USDT daily chart. Source: TradingView
If the price bounces back from the 20-day EMA, it would indicate a strong buy on the dip. Then again, the bulls are trying to keep the price above $1,680. If that succeeds, the ETH/USDT pair could reach $2,000 after a brief pause near $1,800.
Contrary to this notion, if prices are low and fall below the 20-day EMA, it could attract short-term bull profit bookings. The pair could then decline to the 50-day SMA ($1,365), which could act as strong support.
BNB/USDT
BNB
BNB
Ticker below
$329
On Jan. 29, it touched strong resistance at $318 but the bulls failed to overcome this hurdle. This indicates that the bears are fiercely defending all levels.
BNB/USDT daily chart. Source: TradingView
Immediate support at the lower end is the 20-day EMA ($298). The 20-day EMA indicates gains for buyers, but the negative divergence of the RSI indicates positive momentum may be weakening. 20. 20 accordingly
