wind of hope – The bulls are showing signs of a pre-conquest of $40,000. The upcoming weekly close will be crucial, as it could put bitcoin (BTC) back into bullish momentum.
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Bitcoin at $39,000: what’s up with the US Federal Reserve?
The price of bitcoin climbs above $38,900 on Bitfinex today, January 26, 2022, before losing the $38,000 and the $37,000. It is trading at $36,784 at the time of writing. Markets look undecided with a doji very slightly in the red on a daily basis.
Bitcoin returns to around $39,000 as the US Federal Reserve announces that interest rates will remain at 0%. The first rate hike is scheduled for March 2022. The FED’s announcement finally signaled to traders and investors that the institution does not plan to make any major changes to its monetary policy in the very short term.
What wind of hope is this return to levels close to $39,000 blowing on the markets? Trader Michaël van de Poppe points out that bitcoin “held” $36,000 and “has already tested” $38,000. Another test of $38,000 could lead, according to the trader, to a breakout with a potential test of $40,700.
Floor and resistance for bitcoin: from $32,000 to $40,000 for a breakout
Trader Rekt Capital meanwhile shared a chart showing bitcoin price rebounding from the lower line of the Bollinger Band on a weekly basis. Has the price of bitcoin bottomed out? on this time scale after its foray below $33,000 on January 24, 2022?
Rekt Capital urges to watch the $38,000-$40,000 area now for the next weekly close. If bitcoin ends this week above $40,000, it would be a “strong sign” that this resistance zone has turned into support.
The bulls seem to be warding off the $30,000 threat posed by this bitcoin detractor for now, although it’s still too early to celebrate. January 2022 served as a reminder that BTC markets are never safe from another wave of selloffs.
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