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BTCUSD Price Growth Potential Remains

1/30/2023 2:03 PM

Last week, the BTC/USD pair continued to grow and on the weekend reached the level of 23950.00 – the maximum value since August last year, but by now it has lost some of the positions it won.

In general, investors remain optimistic, and demand for digital assets is growing ahead of the US Fed meeting, which will be held this week. It is expected that the regulator will reduce the rate of interest rate increase from 50.0 to 25.0 percentage points and, possibly, hint at the timing of the end of the monetary policy tightening cycle.

In addition, a number of factors indicate a further increase in the prices of cryptocurrencies. Thus, the total market capitalization recently again exceeded 1.0T dollars and continues to grow, and the activity of miners began to recover after a significant drop resulting from the bankruptcy of the FTX exchange. Institutional investors remain interested in digital assets, despite the problems of the industry, and, according to the latest research by Matrixport, they account for 85.0% of BTC purchases currently made. The company's calculations are based on the condition that retail investors dominate the market during the Asian session, and institutional investors dominate during the American session. Yet the first cryptocurrency reaches the greatest growth during the American trading session.

In general, the positive mood in the cryptocurrency market is likely to continue during the week, but much will depend on the decisions and rhetoric of US Fed officials.  

Technically, the price is testing the mark of 23750.00 (Murray level [7/8]), consolidation above which will give the prospect of further growth to the level of 25000.00 (Murray level [8/8]). With a breakdown of the level of 22500.00 (Murray level [6/8]) and the middle line of the Bollinger Bands, the decline will be able to resume to the area of 21250.00 (Murray level [5/8], Fibo retracement 61.8%) and 20000.00 (Murray level [4/8], Fibo retracement 50.0%).

The upward trend in the pair persists, which is signaled by technical indicators: the Bollinger Bands and the Stochastic are reversing upwards, and the MACD histogram is growing in a positive zone.

Resistance levels: 23750.00, 25000.00, 26250.00. | Support levels: 22500.00, 21250.00, 20000.00.

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