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Bitcoin () preserved its active trading range into the Feb. 1 open street wall that markets have looked at the key macro data of the day.
$23,500 becomes the level to beat for Bitcoin bulls
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it continued to move in a narrow corridor around $23,000.
An upcoming interest rate hike and commentary from the United States Federal Reserve preoccupied traders across risk assets, potentially sparking fresh volatility in line with previous months.
The president of the Federal Reserve, Jerome Powell, was to speak at 2:30 p.m. eastern time.
On Binance's backlog, resistance increased during the day, widening price targets in case of a catalyst displacing the market.
On-chain analytics resource Material Indicators noted that “an entire ladder of BTC ask liquidity was removed from the active trading range and stretched up to $23,500.”
“Clearing liquidity makes way for volatility in both directions,” it commented, warning opportunistic traders not to “get trapped.”
Investment research resource Game of Trades likewise said that the market’s reaction would be “more important” than the rate hike confirmation, with markets practically unanimously expecting 25 basis points.
“Volatility ahead,” Maartunn, a contributor at on-chain analytics platform CryptoQuant, agreed while responding to the Material Indicators data.
U.S. Stocks ran open water, riding high over January yields in phase with crypto; the s.
Trader sees "potential holdback" of $21,600.
About the place where a drop in BTC prices might take, Cointelegraph contributor Michael van de Poppe looked at the middle $21,000 region.
Related: Best January since 2013? 5 things to know in Bitcoin this week
The cloud of resistance below $24,000, he said, was now “crucial” — and a failure to knock a hole in it could have consequences.
“Bitcoin rejects crucial area, through which we can assume that we’ll need to crack $23.3K if we want continuation,” he told Twitter followers.
"If not, I anticipate a $22.3 thousand scan and expect $21.6 thousand to be a potential test here."
Another trader, Jibon, also had a bearish hold. Using wyckoff analysis, he argued that Bitcoin had seen its gains peak for now.
The volume is not supportive of this gathering. Textbook say, Price Up, Volume Down = Trap,” part of a Twitter thread on the topic warned.
