Bitcoin price has led to widespread stabilization in the crypto market as its spot trading volume has dropped significantly from a day ago. At press time, the oldest cryptocurrency has changed hands at nearly $37,224, a slight increase over the past 24 hours.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin Price Rises Above $37,000 Resistance At $40,000 – $43,000
Bitcoin price has risen above $37,000, up about 3% in the past 24 hours. Considering the rally earlier today, it looks like buyers are starting to return, but some analysts expect the price action to shift ahead of the US Federal Reserve’s press conference on Friday. Wednesday. Fed officials began their policy meeting today.
The Fed is expected to provide details on the end of its asset purchase program in March, which could coincide with a rate hike. Over the past two weeks, concerns about tighter monetary policy have contributed to a sharp sell-off in speculative assets, including stocks and cryptocurrencies.
Bitcoin buyers remain active, pushing the cryptocurrency to over $37,000, near the top of the weekly price range. However, the upside momentum could be limited around the $40,000-$43,000 resistance area in the short term. The Relative Strength Index (RSI) on the 4-hour chart triggered an oversold signal on January 22, before the nearest bounce. On the daily chart, the RSI is starting to rise from the extreme oversold levels, which could stabilize the current sell-off.
Initial resistance lies at the 100-day moving average on the 4-hour chart, positioned at $40,600. Buyers will need to make a decisive move above that level to halt the downtrend from November.
Another warning sign is the recent increase in BTC Dominance, the market capitalization of BTC relative to the total crypto market capitalization. Usually, an increase in dominance indicates a flight to safety among crypto traders as Bitcoin is considered less risky than altcoins.
The overall crypto market cap is $1.667 trillion and Bitcoin Dominance is 42%.
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