BTC faced considerable volatility as it faced a drop, before pulling above $22500 gradually.
Bitcoin underwent a downward trend to trade below $22500 but gained momentum and moved closer towards $23000 again. The overall crypto markets were red as ETH also dipped below $1600 while volumes of BTC rose over 2% to $27.4 billion. After a stellar previous week with bullish movements, both BTC and ETH seem to have lost steam. BTC has been unable to consolidate above $23000 every time it has crossed the mark.
Analysts claim various incidents could be influencing the present movement in the market. Due to the upcoming Fed meeting next month, bulls could be maintaining a cautious stance. Various speculations are rife in the market regarding rate hikes, and it could go either way. Another reason for the present dip could be due to profit booking by traders after BTC’s rally.
The crypto industry has also been facing several issues in regulatory affairs as authorities in the United States have cracked down on a couple of major exchanges for defaulting on key issues and blocking customers’ funds. The matter is still being examined.
BTC/USD 1 month price chart
Bitcoin is currently trading at around $22600 on January 25, 2023, with BTC/USD up by 0.18% in the previous 24 hours, with most other cryptos trading with negative outcomes in the last day. BTC/USD is trading higher above its 20-day EMA (19,155.99). Proponents of crypto have expressed their positive stance regarding the fate of the crypto markets in 2023.