Bitcoin awaits Fed Powell speech as sellers cement $23.5K resistance
Bitcoin (BTC) preserved its active trading range into the Feb. 1 Wall Street open as markets looked to the day’s key macroeconomic data.
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, this potentially sparking fresh volatility in line with previous months.
Fed Chair Jerome Powell was due to speak at 2.30pm Eastern Time on the day.
On the Binance order book, resistance shifted higher on the day, broadening price targets in the event of a catalyst moving 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 treaded water at the open, riding high on January returns in step with crypto; the S&P 500 saw its best monthly gains in four years.
On the topic of where a BTC price downturn could take it, Cointelegraph contributor Michaël van de Poppe eyed the mid-$21,000 area.
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
Read more on cointelegraph.com
