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(Kitco News) – The The cryptocurrency market has entered a period of corrective trading. Monday After several weeks of positive movements that had all traders optimistic, Bitcoin (BTC) reached its highest level since mid-August The total market capitalization of cryptocurrencies rose to $1 trillion.
The Traditional Markets were also hit by investors who were keeping an eye out for the next week’s developments. Fed Meeting, a flood of earnings reports. The S&P, Dow Jones?, and Nasdaq The day finished in the red with drops of 1.3%, 0.711% and 1.96% respectively.
Data on TradingView shows that Bitcoin Late on, pressure began to return. Sunday The bulls had been overpowering the bears at the $23,700 support level, but the bears managed to push BTC down to a daily low of $22,581 Monday In an attempt to halt the fall, the bullish reinforcements will arrive sooner than expected.
BTC/USD 4-hour chart. SourceTradingView
The BTC pullback: Monday was a weak spot The results of “modest profit-taking and a dip after the market hit a five-month high in overnight action,” According to Kitco Senior technical analyst Jim Wyckoff. .
Most The opinion was shared by Crypto Market analyst TonyWho was the next to post? Tweet Stating that the upside-price target will still be $25,000.
Some Profit-taking is possible, but the market structure remains bullish in the shorter time frames. No need to panic at this stage.
$25,000 remains my bullish goal👇 pic.twitter.com/7gAw4MuqEM
— Crypto Tony (@CryptoTony__) January 30, 2023
According Per the most recent market analysis by Eight GlobalThe Federal Reserve In the coming days, this could have a major effect on the performance and effectiveness of the cryptocurrency market.
“The market is reaching the point where either things will get out of hand (and the pump continues), or the Fed will step in and restore order as officials have done on numerous occasions in the past.” Global Eight stated. “There is still considerable untapped liquidity in the $24,000-$25,250 territory, and if the price rises enough to kick off the selloffs again, a move into that area could be very fast and painful for bears.” According to the report.
“Once the market stops stacking up short positions, we may find more hope for the long-awaited correction. Until then, aggressive long positions can be pursued at $23,500 and the 8EMA daily [exponential moving average], which is currently hovering at around $23k. The target area remains $24k – $25k, and [stop losses] it could be around $22.7k. If the 8EMA loses support
