Bitcoin hits $37.5K, stocks recoup losses ahead of Wednesday’s FOMC statement

On Jan. 25, the crypto market’s overwhelming doom and gloom vibe switched to hope when the price of Bitcoin (BTC) temporarily surged to $37,500 as stock markets mounted a noon recovery that regained most of the losses from Jan. 24.

Despite the recovery on January 25, global markets continue in a state of flux, owing to uncertainty about the US Federal Reserve’s plan to raise interest rates in the following months, with the most recent indication indicating that the first-rate hike will occur in March.

Bitcoin bulls recovered the $36,000 level early on Jan. 25 and managed to fight their way beyond $37,500 before a closing-bell reversal in equities markets impacted on BTC PRICE, according to data 

Here’s what a few analysts have to say about Bitcoin’s current move and whether it’s the start of a long-term uptrend or a bull trap that will drop the price back into the low $30,000s.

$34,000 is a crucial level to hold

On-chain analytics business Whalemap addressed the significance of the recent price recovery off of $34,000, posting the following chart illustrating the bounce off of the “whale” trendline.

According to Whalemap, “Perfect daily bounce for Bitcoin.” It’s now critical to keep $34,000.”If $34,000 fails to hold, the next significant support level is near $25,000, according to the chart supplied by Whalemap.

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Volatility ahead of the FOMC meeting

Market analyst Michal van de Poppe addressed the issue of concern ahead of the Federal Open Market Committee (FOMC) meeting, posting the following chart highlighting the “nice flip of $36,000” and suggesting that the market is now “looking for a continuation to $38,000.”

According to van Poppel,” However, with the FOMC meeting coming up tomorrow, everything remains quite delicate, since volatility on Bitcoin and the markets is likely to remain strong.”

An old CME gap was filled

Independent market researcher Scott Melker made one more note on the recent market movement, posting the following Bitcoin CME futures chart and pointing out that the recent decline in BTC filled a gap that dates back to July 2021.

Melker said, “I’m not a big fan of the CME gap theory, but this was a fantastic fill. “It’s almost a dollar.”

PlanC, a crypto trader and pseudonymous Twitter user, presented a somewhat different perspective on the bull market narrative, claiming that the bear market began in February 2021 and is only now coming to a finish.

The total cryptocurrency market capitalization is currently $1.667 trillion, with Bitcoin holding a 42 percent market share.