• Bitcoin (BTC) stayed above $17,000 on Jan. 10 as risk assets awaited fresh cues on policy from the United States Federal Reserve.
• Fed Chair Jerome Powell was due to speak at a central bank conference on the day, with bulls hoping for a more dovish tone in the wake of several months of declining inflation.
• Michaël van de Poppe, founder and CEO of trading firm Eight, cautioned on becoming overly optimistic about Bitcoin’s short-term price action.
As the world watched, Bitcoin (BTC) held its position above $17,000 on January 10th. This comes as traders keep a close eye on the United States Federal Reserve for potential policy cues. Meanwhile, bulls hope for a dovish tone from the Fed, as inflation has been on a steady decline for the past few months.
The latest Consumer Price Index (CPI) data covering December 2022 will be released later in the week. Until then, investors are eagerly awaiting the speech of Fed Chair Jerome Powell. Taking to Twitter, Michaël van de Poppe, founder and CEO of trading firm Eight, warned traders to not become overly optimistic about Bitcoin’s short-term price action. He went on to explain that BTC/USD could potentially sweep towards $17.1K before bouncing back to $17.5K, or we could see a long at $16.9K.
Meanwhile, full-time Bitcoin trader George, a popular presence on social media, eyed a potential intraday range with $17,000 as support and $17,500 as resistance. He noted that the $17,500 level is the current site of a “major sell wall” and that it will be interesting to see how Bitcoin responds when it is hit.
The overall sentiment in the crypto market remains positive as Bitcoin continues to hold above $17,000. Investors are looking forward to the Fed’s upcoming speech and CPI data as they hope for some dovish signals that could potentially push Bitcoin’s price even higher. With BTC/USD consolidating after hitting $17,396 on Bitstamp the day prior, traders are watching the market closely to see how Bitcoin will respond when the resistance level of $17,500 is hit.