Transition – As the monthly close approaches, the price of Bitcoin (BTC) is trading around $23,000. January’s balance sheet is largely positive for the cryptocurrency, and new data sheds some light on this month’s rally. February begins with a crucial meeting for the markets.
Bitcoin Price: Resumption of Key Levels at Monthly Expiry
Bitcoin price rises to $23,216 on Bitfinex today, January 31, 2023. The cryptocurrency is trading at $23,073 at the time of writing this article. Its price is currently registering a daily gain of 1.03%.
Bitcoin thus returns to $23,000, after the strong downward correction of yesterday, January 30, 2023, which caused its price to fall to $22,516. The 5-hour cryptocurrency price chart shows that the Ichimoku Kumo (cloud) is acting as a supporthalting yesterday’s fall, and supporting the current rise.
On a daily basis, Bitcoin price has come back just right above the Tenkan Sen (black line) after dropping to levels well below yesterday.
On a monthly basis, the price of Bitcoin should achieve a close above the Tenkan Sen (black line) over this period.
Regarding this monthly close, the trader Rekt Capital still has underline earlier in the day, the fact that the cryptocurrency is “fighting” to end the month “above the resistance of $23,400 “.
Bitcoin could close this month below this level. Nevertheless, by holding above $23,000 on this monthly expiry, the price of Bitcoin would then register a gain of nearly 39% in January.
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Western institutions behind this month’s rally
In today’s Twitter posts, analyst Willy Woo attempts to explain the reasons behind the January rally, which is said to coincide “with the emergence of a new pattern influx of stablecoins in crypto exchanges during working days only”.
Willy Woo sees it as a signature “ large institutions that buy “. Based on trading hours, he infers that these buyers are “Western institutions in the United States and Europe.”
However, Twitter account Bitcoin Archive questioned Willy Woo on the basis of his theory, which is based on the fact that these institutions use stablecoins for their purchases, “while they have access to deep liquidity in their national currencies”. .
The analyst replies that the existing crypto funds “remained in stablecoins”. He recalled that the funds are in contact with crypto banks like Silvergate or Signature Bank. The former suffered a bank run, while the latter reduced its exposure to cryptocurrencies during these bear markets.
Willy Woo concludes that stablecoins were ” the best place to hold USD in recent months “.
A beginning of the month under the leadership of the FED for the price of Bitcoin
Bitcoin price will kick off February with the FOMC meeting. According to the CME FedWatch Tool, the likelihood that the US Federal Reserve (FED) will raise federal funds rates by 25 basis points soon, currently stands at 98.9%, against 1.1% for maintaining current rates.
If the FED confirms this 25 basis point hike, will risky assets like Bitcoin benefit or will the markets have they already anticipatedin their January purchases, such a decision, which would then no longer have an impact during the announcement?
Logically, a lack of increase – very unlikely given previous figures – would be unexpected and strongly positive news. The scenario to fear for risky assets would be announcements by the FED in the direction of a rate hike above these 25 basis points.
The price of Bitcoin is recovering from the pressure blow of the previous day. Although the month of January was largely in the green, the bullish continuity was stopped by the resistances around $23,400 and $24,000. Will the bulls have the opportunity to attack these key levels again in February?
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