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Last week, Bitcoin started at a price level of $39,000 but gradually went down to $38,000 by Tuesday (23/01). However, after a sudden drop to $38,000, Bitcoin (BTC) recovered and reached the $41,000 level due to market activity and improved macroeconomic conditions. This was mainly because of the U.S. Commerce Department’s consumption expenditures (PCE) price index, which showed a 2.9% annual rise in December 2023, excluding food and energy.
But the big question remains: Is this a genuine recovery, or just a temporary break in the bearish trend?
Investors have been selling their assets for a profit, indicating a possible market peak. Long-term holders' increased activity in the past week suggests that their selling could have a negative impact. Investors are anxious with moderate unrealized profits.
In the current market scenario, Bitcoin (BTC) is exhibiting an upward trend, climbing from $40,000 to $42,000. This positive movement suggests the formation of a slightly bullish market structure, indicating potential optimism among market participants. However, it's crucial to exercise caution as the Federal Reserve is set to announce interest rate decisions this week.
The release of this information typically introduces an element of uncertainty and may contribute to increased volatility in various financial markets, including cryptocurrencies.
The Ethereum (ETH) market is currently displaying a consolidation pattern around the $2,200 level. This stability could be interpreted as a period of price equilibrium, suggesting that market participants are assessing the next potential directional move. It's noteworthy that Ethereum's dominance has slightly declined to 17.20%, indicating a relative decrease in its market share compared to other cryptocurrencies. This shift in dominance, coupled with Ethereum lagging behind Bitcoin (BTC), might prompt a reevaluation of trading strategies.
This material is for general information and is not investment advice, a recommendation, or solicitation to buy and sell any cryptocurrencies, digital assets, securities or derivative instruments, or to make any investments. Mobee is under no obligation to update this report based on information and events that occurred after this report was created and published. Any suggestions or recommendations in this report may not be appropriate for certain users.
