Bitcoin price led a broader market stabilization with reduced spot trading volume
Bitcoin price led to a broad stabilization in the crypto market as its spot trading volume fell dramatically from a day ago. At the time of publication, the oldest cryptocurrency was changing hands near $37,224, up slightly over the past 24 hours.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price rises above $37,000; resistance at $40,000 – $43,000
The Bitcoin price rose above $37,000, up about 3% over the past 24 hours. Considering the rebound earlier today, it appears that buyers are starting to return, but some analysts expect choppy price action ahead of the U.S. Federal Reserve’s press conference on Wednesday. Fed officials kicked off their policy meeting today.
The Fed is expected to provide details about ending its asset-purchase program in March, which could coincide with a rate hike. Over the past two weeks, concerns about a tighter monetary policy have contributed to a sharp sell-off across speculative assets, including equities and cryptocurrencies.
Bitcoin buyers remain active, pushing the cryptocurrency over $37,000, near the top of the week-long price range. Still, the upside could be limited around the $40,000-$43,000 resistance zone over the short term. The Relative Strength Index (RSI) on the four-hour chart triggered an oversold signal on January 22, which preceded the latest price bounce. On the daily chart, the RSI is starting to rise from extreme oversold levels, which could stabilize the current sell-off.
An initial resistance is at the 100-day moving average on the four-hour chart, positioned at $40,600. Buyers will need to make a decisive move above that level to pause the downtrend from November.
Another sign of caution is the recent rise in BTC Dominance, which is BTC’s market capitalization relative to the total crypto market cap. Typically, an increase in the dominance ratio indicates a flight to safety among crypto traders as Bitcoin is viewed as less risky than altcoins.
The overall cryptocurrency market cap stands at $1.667 trillion, and Bitcoin Dominance is 42%.
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