Premises or bull trap – The price of Bitcoin (BTC) continues its rise above $17,000, after returning above this level over the weekend. Is a bullish continuity possible this week?
Volatility at the rendezvous for the price of Bitcoin
After reclaiming $17,000 the day before, the price of Bitcoin rises to $17,399 on Bitfinex today, January 9, 2023. Cryptocurrency is trading at $17,216 at the time of writing this article. Its price is currently registering a daily mini-gain of 0.45%.
Bitcoin price hit a roughly three-week high at the start of an important week. The trader Michaël van de Poppe has moreover reminded them ” key events » of this week, and which should bring volatility on the stairs.
Regarding these major events, the Chairman of the US Federal Reserve, Jerome Powell, will speak on January 10, the Consumer Price Index (CPI) in the United States will be published on January 12, while data on the sentiment of US consumers will be released the following day.
In light of this rally from $17,000 and today’s rise above that level, are the markets pricing in words from Jerome Powell or inflation numbers that would confirm another drop the size of the next hike in the fed funds rate?
Data from the CME FedWatch Tool indicates that the likelihood of a 25 basis point hike at the next FOMC meeting on May 1er February, currently stands at 79.2%against 20.8% for an increase of 50 basis points.
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A cloud to cross for a start of bullish confirmation?
Bitcoin price closed the first week of 2023 in the green and is back above $17,000. Is it therefore on the way to a sustainable bullish recovery? For the trader il Capo Of Crypto, “there is not yet a single bullish confirmation “.
Bitcoin would be testing supports that have given way, and are acting as resistance. Markets have seen this pattern many times before this crypto winter.
The Bitcoin price chart on a daily basis also shows that the price of the cryptocurrency is still currently in the kumowhich has acted as resistance for weeks.
What would then be the key levels to monitor, the crossing of which could be interpreted as an important movement? The CryptoQuant analyst and contributor, who uses the Venturefounder Twitter account, pointed to the fact that Bitcoin is stuck in the trading zone. $16,000-$18,500 for two months.
He believes that a “break in either direction can lead to 20% volatility and that such a move could happen “soon”. According to the analyst, if the $16,000 gave way, the price of Bitcoin could then drop to $13,000, while if the cryptocurrency managed to turn this $18,500 into support, its price could reach $22,500.
There are currently no signs to speak in favor of a sustainable rebound for the price of Bitcoin. The market’s reaction to Jerome Powell’s intervention and the release of the CPI data will likely provide a better appreciation of the strength of the bulls.
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