According to the annalist from crypto blog BitTirbute.com the Bitcoin (BTC) increased by 1.34% on Tuesday. The cryptocurrency closed this month up 39.67% to $23,135. This was after rebounding a 3.86% decline since Monday.
The period of BTC was the strongest ever since October 2021. As the day got off to a rocky start, BTC dropped to something like an initial low of $22,730.
BTC rose to a later peak of $23,297. After the shift on Monday, Tuesday's investment focus was on the US data schedule. A positive NASDAQ session was bolstered by lower inflation data.
Employee salaries increased by 1.0% in Q4 compared to 1.3% in Q3. This was a slower growth than the Employment Cost Index's 1.2% rise in Q3.
More attention was paid to inflation indications than a sudden decline in domestic demand. In January, the CB Consumer Confidence Index decreased from 109.0 to 107.1.
The US economic statistics and the NASDAQ were the main drivers of BTC and the larger crypto market as investors turned their attention to the Fed.
The NASDAQ Index increased by 1.67% on Tuesday to round out the greatest January since 2001. After Tuesday's statistics, weaker results might reduce the likelihood that Fed Chair Powell would hold a bullish media briefing.
The Fed will announce first ever interest rate announcement of the year toward the end of the meeting. Traders anticipate an increase in interest rates of 25 basis points.
Powell's briefing as Fed Chair, though, is questionable. Powell might be forced to give another bullish press conference by high inflation and a tight job market.
Speculation of having to raise rates at the cost of the US industry in order to combat excessive inflation would impact.
But Powell might assert that the Fed's initiatives are achieving the desired outcome.
Also, that the Fed might adopt a much less severe interest rate course, which would promote a positive BTC reaction.
Traders should keep an eye on the cryptocurrency news even if the Fed is the main topic of discussion. Particular attention should be paid to FTX, the SEC v. Ripple, etc. updates.
Inside the Greed Region
The BTC Fear & Greed Index increased, going from 51/100 to 61/100. The NASDAQ Index and the larger crypto market were supported.
This was because the US economic statistics reduced expectations of an aggressive media briefing from Fed Chair Powell. The Index reacted by moving back into the Greed zone.
Nevertheless, if Powell mentions moving forward at the price of the US economy, the trip to the Greed zone might only be fleeting.
To sustain a BTC run at $25,000 in the near term, the Index must stay out of the Fear zone.
A descent to the Fear area would indicate a short-term breakdown of the bull market.
BTC Price Measures
BTC was worth $23,119 at the moment of posting, a decrease of 0.07%.
After a choppy beginning of the day, BTC climbed to a high of $23,179 after falling to a low of $23,009.
Practical Analysis
To reach the (R1) at $23,378 for BTC, it must not go below the level of $23,054. A break of the $23,297 peak on Tuesday would indicate positivity.
However, assistance is required from Fed Chair Powell and the NASDAQ Index. In the case of a bullish day, the buyers will probably try opposition above $24,000 as well as the (R2) at $23,621.
At $24,188, there is the Third Major Resistance Level. In the event of a breakdown through the pivot, the (S1) at $22,811 would be used.
Yet, BTC should not try to go below $22,500 and the (S2) around $22,487, assuming a Fed-driven crypto sell-off.
To offer the bears a chance to attack S2 ($22,487), a collapse through the 50-day EMA ($22,908) would favour a drop through S1 ($22,811).
A break of the 50-day EMA may indicate a bearish trend.