Major coins traded in the green on Tuesday evening, as the global market cap rose 1.25% to $1.05 trillion, as of 8:30 p.m. EST.
What Happened: The largest cryptocurrency by market value, Bitcoin BTC/USD, traded at $23,118. Ethereum ETH/USD was changing hands at $1,585, up 1% in the last 24 hours. Dogecoin DOGE/USD was up 4% in the last 24 hours, pushing its price up to $0.094.
U.S. equities ended higher on Tuesday as the markets awaited the Federal Reserve’s decision on a potential interest rate increase. The tech-heavy Nasdaq Composite closed up 1.6%, while the S&P 500 and the Dow Jones Industrial Average rose an impressive 1.4 and 1%, respectively.
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Bitcoin has started 2023 with an impressive 40% gain so far. But the rally could take a hit as Fed Chair Jerome Powell is expected to remain hawkish. Despite the anticipated price pullback, investors and industry experts remain optimistic that this could be just a temporary pause in the ongoing crypto bull market.
Analyst Notes: ”Bitcoin appears to have massive resistance at the $24,000 level, so if the rally stalls after the Fed and mega-cap tech earnings fireworks, a consolidation back towards $20,000 could happen,” said Edward Moya, senior analyst at OANDA, in a note seen by Benzinga.
“Wall Street is slowly growing confident that this week’s Fed rate hike might end up being the last one in this tightening cycle.”
Crypto analyst Tone Vays believes that Bitcoin is likely to experience a major pullback in the short term, despite its impressive gains in January. The analyst tells his 123,000 YouTube subscribers that BTC will face some “major, major resistance” at the $25,000 mark.
“I have been waiting for us to hit $25,000, and it’s going to be a doozy. Once we get close to $25,000, there’s a very high probability of rejection… We do have room on the momentum reversal indicator, but we’re about to run into a triple-headed resistance monster that is not going to be easy to break.
According to Michaël van de Poppe, the crucial resistance level for Bitcoin remains at $23,300.