Market participants are wondering whether it’s time to buy bitcoin or more attractive buying opportunities could be expected
The price of bitcoin holds relatively steady these days, oscillating around the $34,000 figure while trying to decide on the further direction. The BTCUSD pair briefly climbed to the $34,800 local resistance at the start of the week before losing the upside momentum as buyers were spooked by the $35,000 mark that was briefly derailed last week for the first time since May 2022.
On Tuesday, the largest cryptocurrency by market capitalization retains a modest bearish bias while staying above $34,000 as volatility has ebbed somehow both in cryptocurrency and traditional financial markets. The US dollar struggles for direction as well, with traders awaiting the Federal Reserve policy meeting that concludes on Wednesday. The central bank’s decision and rhetoric on future interest rates would set fresh direction for stocks, currencies and digital currencies as well.
Market participants are wondering whether it’s time to buy bitcoin or more attractive buying opportunities could be expected. After some hesitation, BTC would choose the direction, with upside potential persisting for the time being. However, downside risks remain while below the $35,000 handle. A decisive break above this barrier would pave the way to a more sustained ascent in the short- to medium term.
For now, the digital coin needs to hold above $34,000 in order to stay afloat and refrain from a deeper bearish correction towards the $33,400 region that capped the selling pressure in recent local sell-off. On the upside, a decisive break above $34,800 would pave the way towards the $35,000 mark, followed by the $35,200 zone that capped the rally last week. On the weekly timeframes, the technical picture looks upbeat after solid gains witnessed earlier in the month.