Bitcoin Slips to Support $22,700 as All Eyes Turn to the Fed

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(Kitco News) – The cryptocurrency market finally entered correction territory in trading on Monday after several weeks of gains that took Bitcoin (BTC) to its highest price since mid-August and lifted higher. the total crypto market capitalization above $1 trillion.

Traditional markets were also hit as investors eagerly await a busy week of developments that includes the latest Fed meeting, a deluge of heavy earnings reports and employment data. The S&P, Dow and Nasdaq all ended the day in the red, down 1.3%, 0.71% and 1.96%, respectively.

Data from TradingView shows that Bitcoin began to come under pressure late on Sunday as bears overwhelmed bulls at the $23,700 support level and managed to send BTC down to a daily low of $22,581 on Monday ahead of the arrival of bullish reinforcements to try to stop the decline.

BTC/USD 4 hour chart. Source: Trading View

The weakness seen in BTC on Monday was the result of “some slight profit taking and a downward correction after the market hit a five-month high in overnight action,” the analyst said. Kitco’s chief technical officer, Jim Wyckoff.

So far, the pullback has done little to change the prevailing outlook, as “BC bulls have the overall near-term technical advantage as an upward price trend is in place. on the daily bar chart,” Wyckoff said. “The path of least resistance for near-term prices remains sideways to higher.”

This view was widely shared by Crypto market analyst Tony, who posted the following Tweet stating that the upside price target remains at $25,000.

$BTC / $USD – Update

Small selloff today, but the market structure remains bullish on the lower timeframes, so no need to panic just yet

$25,000 remains my upside target pic.twitter.com/7gAw4MuqEM

— Crypto Tony (@CryptoTony__) January 30, 2023

Insight into where Bitcoin needs to end January in order to have a bullish outlook was provided by market analyst Rekt Capital, who posted the following tweet highlighting the importance of the support at $23,400.

Right now, #BTC is forming an upside wick beyond monthly resistance around $23,400 (blue)

However, the monthly close is still a few days away and things could change in the meantime.

A monthly $BTC close above ~$23,400 would be bullish#Crypto #Bitcoin https://t.co/9M84m6W7kk pic.twitter.com/8q3l55VwrH

— Rekt Capital (@rektcapital) January 30, 2023

And according to the latest market update from Eight Global, the Fed will have a big impact on the performance of the crypto market in the near future.

“The market has reached the point where things will get much more out of control (and the pump continues), or the Fed will rule the bulls and bring order back in a way that officials have repeatedly signaled in the past,” Eight Global said. “There is still noticeable untapped liquidity in the $24,000-$25,250 area, and if the price rises enough to kick-start the selloffs, a move into this area could be quite quick and painful for the bears,” the statement said. report.

“Once the market stops stockpiling shorts, we can have more hope for the long-awaited correction. Until then, aggressive longs can be sought at $23,500 and the daily 8EMA [exponential moving average], which currently sits at around $23,000. The target area remains $24,000 – $25,000, and [stop losses] could be placed at around $22.7k. If the 8EMA is lost as support, it is time to favor shorts,” the analysts concluded.

Red in the altcoin market

Only a handful of tokens in the top 200 managed to post positive gains in trading on Monday, while most tokens were deep in the red.

Daily performance of the cryptocurrency market. Source: Coin360

Notable gainers for the day include a 68.84% rise for Everscale (EVER), a 60.3% rise for Voyager Token (VGX), and a 9.11% gain for Injective (INJ).

The overall cryptocurrency market capitalization now stands at $1.038 billion and Bitcoin’s dominance rate is 42.4%.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.

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