Bitcoin price was believed to mark the bottom somewhere by the mid of Q1 2023 as the bear held a strong grip over the market. However, the market quickly displayed a bullish divergence since the beginning of the year 2023, hinting at the beginning of a recovery phase.
Now that the crypto markets are being impacted by external events, the coming week is expected to be volatile as the FOMC is set to meet to announce the new Fed rate.
The FOMC meeting is scheduled to happen in the first few days of the week. Another couple of events are believed to take place that may not only impact the crypto space but also the traditional financial markets too. However, until the agenda of the meeting is not let out, the BTC price is believed to trade flat and spike high on the announcement as predicted by a popular analyst, Johnny Woo.
“Expecting to see something like this until FOMC. What will happen on Feb 1? Sharp increase, then, sharp decrease. It happens/ has happened every time on all FOMC days,”
Along with FOMC, GAFA financial results, US employment statistics, and big events like the earnings of Apple, Google and Amazon are to be announced. Therefore, a stage is assumed to have been set for the crypto space in the month of February wherein based on the earnings, the markets are believed to travel.
However, the speculation of a rise of 25bps or 50bps is hovering within the markets which may induce a significant bullish momentum within the crypto space. Therefore, the bears may not attempt to defend the $25,000 levels in the coming days and hence a significant breakout could be expected.
Therefore, after achieving the crucial $25,000, the bulls may undergo a sharp impulse to $27,500 to $28,000 may be expected. However, soon after achieving these levels, a massive correction may drag the price lower to $20,000 as suggested in the above chart. While the fresh rates are about to be announced, it is pretty difficult to analyze how markets may react but the volatility within the markets may rise high.
Source: https://coinpedia.org/bitcoin/crypto-markets-to-remain-highly-volatile-in-the-coming-week-bitcoin-prices-may-hit-25k/