Bitcoin (BTC) rebounded from multi-day highs on January 27 as bullish enthusiasm waned after the latest US Federal Reserve meeting.
Hourly BTC/USD light chart (Bit Mark). Source: Trading View
Disappointing bitcoin hits $37,500
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD reversed some gains that peaked at $38,950 on Bitstamp.
The pair then refocused to $36,000, the level it was trading at at the time of writing.
With the momentum gaining momentum, market commentators are beginning to hope for a stronger approach to the week, possibly including a challenge at the $40,000 mark. Now, however, the mood was noticeably less cheerful.
“Bitcoin was rejected at $38,000 and reached its first major support level at $36,000,” Mikael van de Poppe, a Cointelegraph contributor, told Twitter followers.
“A short-term bounce is possible, but anything below $37.5000 does not require any optimism.”
Detailed BTC/USD chart with support and resistance areas. Source: Mikael van de Poppe / Twitter
Van de Poppe joined others in expressing their dissatisfaction with the outcome of the Fed meeting, particularly the lack of new ideas and policy input from Fed Chair Jerome Powell.
“With inflation above 2 percent and labor market strength, the Committee anticipates that it will soon be appropriate to raise the target range for the federal funds rate,” the FOMC said in a statement.
“The Committee decided to continue reducing the monthly pace of net asset purchases, so that it ends in early March.”
At the same time, the cryptocurrency markets had few macro signals to respond to, a paradigm shift in price behavior yet to be evident.
Cryptocurrency liquidation exceeds $300 million
Altcoins followed bitcoin, dropping several percentage points on the day, which in turn contributed to the overall losses for the week.
Related: Bitcoin Experts Split on Bitcoin Floor as Bloomberg Analyst’s Eyes Went Out of Their Sockets
Ether (ETH) fell below $2,500, still down 22% over the past seven days.
1 hour light chart of ETH/USD (bit sign). Source: Trading View
Others did slightly better, with Dogecoin (DOGE) holding much of its previous success and Cardano (ADA) trading flat at $1.06.
A watch source on the Coinglass chain confirmed that the Fed did not leave everyone unscathed, but the total amount of crypto-liquidations exceeded $320 million.