The Bitcoin (BTC) price continues to send mixed signals, which increases uncertainty among investors and has a negative effect on asset prices in the market.
Data from Cointelegraph Markets Pro and TradingView show that the BTC price stays below $ 36,000, and while the crypto and stock markets saw a brief upswing on January 26, it seems that comments from the last FOMC meeting fluctuate as investors digest the fact that interest is increasing in my path. I’m on my way.
BTC / USDT 1-day chart. Source: Trading View
Here’s what analysts and traders are saying about the recent Bitcoin price trend and the macroeconomic factors affecting the broader cryptocurrency market.
The year of trading in the series
The long-term trade with BTC since early 2021 was revealed by Mike McGlone, chief strategist at Bloomberg Intelligence, who posted the following chart and asked: “Where does trade in Bitcoin and Ethereum end up?
Weekly chart for BTC / USD. Source: Twitter
According to McGlone, the key to getting out of the current area is the “bullish fundamentals” that underpin Bitcoin’s underlying strength.
“According to the rules of the economy, a market where demand is high and supply is low will rise over time, indicating that Bitcoin may bottom around $ 30K again with resistance of $ 60K.”
The Fed continues to add downside risk
An in-depth analysis of the impact of the Federal Reserve’s meeting on January 26 was provided by Bilal Hafez, CEO and head of research at Macro Hive, who noted that the tone of the meeting “was more hawkish than expected.”
Hafez cited the Fed’s decision to raise its inflation forecast as a sign that the central bank has realized “they need to be more hawkish than before” and highlighted Powell’s comments that “this cycle will be different from the previous one”. “, which indicates a faster increase than before.”
At the same time, Hafez noted that the Fed “has not yet made a decision on the field,” noting that Powell “has not provided much additional information on quantitative easing, other than that it will run in the background.”
“Overall, the Fed is satisfied with the sell-off in the equity and risk markets because it tightens financial conditions and thus can lower inflation. Bond yields rose after meetings, as the stock and crypto markets made a profit. The Fed continues to add downside risk to risky markets. ” .
Related topics: Derivative data shows Bitcoins $ 39,000 Bounce Just a Bounce
Short-term weakness, long-term strength
The spot forecast for BTC was briefly touched upon by derivatives traders and Twitter user Crypto McKenna who posted the following chart stating that “BTC price action is getting very boring.”