The crypto markets are trading in a close range while BTC and other altcoins fight to cross their resistance.
Bitcoin continued to hover below $21000 as it failed to maintain its hold over that mark. Late on January 19, it had crossed the resistance but fell below the level once again. It has traded in this tight range for the last two days and seems to be stabilized. The crypto markets were extremely bullish in the week between January 12 and January 19. BTC gained above 10%, while ETH was up by 8.7%. The markets have corrected by over 4% at present.
The global economy was discussed at length at the World Economic Summit at Davos, where several experts have claimed the interest rate hikes would continue at a similar pace as that of 2022. A prominent central banker stated that core inflation had not subsided yet. Analysts fear that further tightening of liquidity could affect earnings, increase lay-offs and induce recessionary fears. The crypto market has been upbeat this year, but experts believe that the effects could affect crypto as well.
BTC/USD 1 month price chart
Bitcoin is currently trading at around $20900 on January 20, 2023, with BTC/USD down by 0.65% in the previous 24 hours, with most other altcoins in decline in the last day. BTC is trading much higher than its lows of 2022, but the road ahead could be tricky.