Bitcoin (BTC) is heading for under- $ 30,000 as the Fed’s January political decision approaches
Bitcoin (BTC) and the broader market were back in deep red on Saturday. A 4th The day in a row in the minus saw Bitcoin visit levels below $ 35,000 for the first time since 25.th July.
On the day, Bitcoin fell by 3.82% and ended the day at $ 35,076. Things were not better elsewhere. Ethereum (ETH) followed Friday’s decline of 14.4% with a loss of 6.12%, with Crypto.com Coin (CRO) falling by 16.87%. Crypto.com Coin had fallen by 14.6% on Friday. Cardano (ADA) did marginally better, falling just 4.46% on Saturday.
The crypto market value fell by another $ 85 billion on Saturday, after giving up $ 200 billion on Friday. At the time of writing, the total market value was 1[ads1]611 billion dollars. In November, the total market value had risen to 3 009 billion ATH before it stumbled to the lowest month of 1.514 billion dollars.
Bitcoin Fear & Greed Index
As at 22nd January, the Bitcoin Fear & Greed Index stood at 13/100. While continuing to hold over 8th January’s lowest level of 10/100, the index has retreated from the current month’s highest 24/100.
After failing to move back to 30/100 levels and into orange, the index has continued to reflect the market’s bearish sentiment. Significantly, the index has been on a downward trend from 20th 24/100 January. The index had risen to 84/100 on the 9thth November before striking back.
With the Bitcoin bears in full control at the moment, we continue to have the perception that an index movement back to 30/100 levels will be necessary to signal the beginning of a Bitcoin recovery.
Important market drivers
The market’s sentiment towards the Fed’s monetary policy and regulatory talk and activity are still the most important drivers.
While the US markets are closed this weekend, there has been no positive chatter to change market sentiment. With the Fed in action next Wednesday, dip buyers could sit on the sidelines. While the markets have started to price in 4 interest rate increases for the year, nothing is set in stone. Wednesday’s tariff declaration and press conference will provide some clarity on what lies ahead of the year.
Apart from the Fed’s monetary policy, central bank talk and the threat of more action are also always present. Following SEC leader Gensler’s comments last week on increased scrutiny of the crypto market, regulatory activity is likely to pick up in the coming months.
The big news this weekend, however, was that Russia’s central bank proposed banning crypto- and crypto-mining. With market reaction to the news negative, markets must wait until Monday at the earliest for any updates on the proposed ban.
All this points to another choppy day ahead of us.
Bitcoin price action
At the time of writing, Bitcoin was up 0.90% to $ 35,392. Bitcoin must avoid falling back through today’s $ 35,339 pivot to support a run at Saturday’s highest $ 36,812. However, a change in sentiment will be necessary for Bitcoin to break based on today’s first major resistance level of $ 36,549.
A fall back through today’s pivot will bring in under $ 34,000 and the first major support level of $ 33,867 in play. However, in the case of an extended sale, support of $ 30,000 may come into play. For Bitcoin and the wider market, the lack of regulatory talk may provide some respite early in the day. It is hardly a shift from today’s bearish sentiment, but …
This article was originally posted on FX Empire
