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Bitcoin bounces back, but can it hold onto its gains?

Home >  Daily Market Digest >  Bitcoin bounces back, but can it hold onto its gains?

Written by:
Myrsini Giannouli

01 February 2022
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Last week, crypto markets tumbled and Bitcoin crashed below $33,000 amid stock sell-off. It later managed to rebound though, and its price started moving upwards. The Federal Reserve’s plans of a tighter monetary policy have halted crypto’s advances, and Bitcoin and Ethereum dipped once again. Cryptocurrencies have come under pressure as a risk-aversion sentiment was triggered by rising geopolitical tensions and the Fed’s signals of a rate hike and of a more aggressive monetary policy.  Other major central banks, such as the BOE are also expected to raise their benchmark interest rates, which may push crypto prices further down.

Bitcoin has already lost over 20% of its value within 2022 and the outlook for the currency is bearish. On Monday, the bulls started regaining some of the lost ground and Bitcoin price catapulted above $38,700, while ETH climbed above $2,700. It remains to be seen whether this is a temporary advance, or if a bullish market can prevail and reverse the downtrend that many major cryptos have been following the past months. 

If BTC continues its downtrend, it may find support around $33,000, while if the price of Bitcoin goes up, it may find resistance at $43,000 and further up at $44,300. Ethereum is currently trading above its $2,640 level support. If its price goes down, it may find further support around $2,150 and further down at $1,700. In case its price goes up, it may find resistance around $3,000 and further up around $3,220.

BTC/USD 1h Chart

BTCUSD 1hr chart

 

ETH/USD 1h Chart

ETHUSD 1hr chart

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Written by:
Myrsini Giannouli

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