The anticipation surrounding the upcoming Federal Open Market Committee (FOMC) meeting has got investors on the verge of their seats. As the crypto market eagerly awaits the outcome, Bitcoin has started feeling the heat, and it is consolidating in a range-bound zone.
Despite its recent struggle to establish a solid trend, there’s a glimmer of hope that the FOMC meeting could spark an upward rally in the BTC price chart. With the US economy showing steady signs of improvement and the inflation rate slowing down, the stage is set for a potentially bullish dance for Bitcoin.
Bitcoin Witnesses The Best Month Since October 2021
Since the beginning of the new year, BTC’s price has gained over 40%. According to on-chain analytic firm, Glassnode, BTC has performed relatively well in January since October 2021, when it saw a jaw-dropping 41% gain in value.
To describe the reason behind the overwhelming performance, Glassnode hints at a combination of historic spot demand and a series of short squeezes, which has created a perfect storm in driving up the price of Bitcoin and sending it soaring to new heights.
Moreover, the firm claimed that the daily BTC transaction had touched a high of 50K, signifying investors’ interest in the asset. In addition, the flow of Bitcoin in and out of exchanges has stabilized significantly as a daily average of around $625 million is moving in both directions, bringing the exchange flow in a balanced shape.
This balanced situation in exchange flow signifies a healthy and robust BTC market, as buyers and sellers engage in a steady back-and-forth dance. This starkly contrasts with the turbulence of late 2022, when outflows dominated the scene.
Glassnode stated, “We also note that initial impulse of exchange outflows, in the aftermath of FTX, have calmed to neutral and are now balanced by newly motivated inflows.”
Will BTC Price Bring Golden Times Above Golden Cross?
Investors are busy predicting the next price movement because the BTC price gets stuck in the range of $23K-$24K in the last three days. As the market’s FUD situation hops in, analysts are closely watching the golden cross formation, which may spark bullish hopes in the BTC price chart.
A well-known crypto analyst, CryptoRand, predicts that Bitcoin price is poised for a bullish breakout by the next few weeks as it forms a golden cross in its price trend. The analyst noted that the 50 MA is building potential to cross above the 200 MA, known as the formation of a golden cross. The golden cross indicates a bull market for BTC, and it is strengthened with high trading volume, acting as a catalyst in the next Bitcoin bull run.
In 2019, one of the most significant golden crosses in Bitcoin’s history took place, and it made BTC the hottest investment in the crypto world by pushing its price by 600% in two years.
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