empty
30.01.2025 05:39 PM
Bitcoin has room for further rally?

Bitcoin continues its upward momentum following the latest Federal Reserve monetary policy meeting and Jerome Powell's press conference, in which he briefly touched on cryptocurrency regulation.

The flagship crypto has already gained 3.5%, reaching $105,300, while smaller tokens such as Ether and Solana have also posted notable gains.

This image is no longer relevant

On Wednesday, Fed policymakers paused monetary easing. Jerome Powell, during his traditional briefing, made it clear that the central bank needs to see more progress in the fight against inflation before considering further interest rate cuts. In response to a question about the risks associated with digital assets, the Fed's Chairman stated that banks are fully capable of serving crypto clients as long as they understand and manage the risks effectively. He also added that stronger regulatory oversight from Congress regarding cryptocurrencies would be highly constructive.

Powell further emphasized that it is crucial for financial institutions to enhance their risk management capabilities in the crypto sector. This would not only attract new clients but also ensure financial stability amid the growing popularity of digital assets. He stressed that additional regulatory measures could help establish clear rules for all market participants, fostering transparency and trust, which, in turn, would support greater adoption of cryptocurrencies within the traditional financial system.

These comments mark the first time the Federal Reserve has issued such comments, as the central bank has historically maintained a negative stance toward digital assets. Although Powell's remarks were measured and cautious, they coincided with growing investor expectations for a more crypto-friendly regulatory environment under President Donald Trump, who has openly supported the cryptocurrency sector.

No wonder, US traders reacted positively to Powell's comments, pushing Bitcoin higher. From a broader technical perspective, signs indicate that Bitcoin's rally is gaining strength.

Importantly, Bitcoin hit a record high of $109,241 ahead of Trump's inauguration on January 20 before retreating. Since Trump's election victory in early November, Bitcoin has surged over 50%, leading some analysts to question whether the rally needs a breather.

Other market participants argue that greater US engagement with crypto signals further growth opportunities. Investment firms are also flooding the Securities and Exchange Commission with proposals for launching more cryptocurrency exchange-traded funds (ETFs).

However, Bitcoin's recent price movements have increasingly correlated with US tech stocks, which recently experienced a sharp sell-off. This has led some investors and traders to question whether a bubble is forming in the fintech sector.

This image is no longer relevant

Bitcoin technical outlook

Buyers are now targeting a return to $106,000, which could pave the way for $107,500, followed by $109,000. The long-term target remains $110,400—a breakout above this level would signal a return to a mid-term bullish market.

In case of a Bitcoin correction, support is expected at $104,400. A drop below this level could quickly drag BTC down to $102,900, with further downside potential toward $101,200. The ultimate bearish target would be $99,500.

This image is no longer relevant

Ethereum technical outlook

For Ethereum, a clear consolidation above $3,220 would open the door for a push toward $3,264, followed by $3,314. The long-term target remains $3,373—a breakout above this level would confirm a return to a mid-term bullish market.

In case of an ETH correction, buyers are expected to step in at $3,161. A move below this level could quickly push ETH down to $3,106, with a final bearish target at $3,056.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Bitcoin – Technical Analysis Overview

Another Friday has arrived, yet Bitcoin continues to remain in a wait-and-see mode. The price range remains narrow, with the market holding below the short-term weekly trend resistance at 99,497

Evangelos Poulakis 12:12 2025-02-21 UTC+2

Trading Recommendations for the Cryptocurrency Market on February 21

The demand for Bitcoin and Ethereum remained steady during yesterday's trading session. Despite significant selling at the start of the U.S. session, Bitcoin and Ethereum quickly rebounded. During today's Asian

Miroslaw Bawulski 10:13 2025-02-21 UTC+2

Even Fed policymakers make remarks about crypto industry

Bitcoin and Ethereum closed yesterday in positive territory, maintaining solid prospects for a return to a bullish trend. It makes sense to discuss yesterday's interview with Michael Barr, the Federal

Jakub Novak 09:53 2025-02-21 UTC+2

Wave analysis of BTC/USD on February 21. Bitcoin unwilling to click into gear

Wave analysis suggests limited upside potential The 4-hour wave structure for BTC/USD appears clear and well-defined. Following a lengthy and complex a-b-c-d-e corrective structure that formed between March

Chin Zhao 09:52 2025-02-21 UTC+2

Technical Analysis of Intraday Price Movement of Doge Cryptocurrency, Friday February 21, 2025.

After successfully breaking out of the downtrend line (red) and forming a Bullish 123 pattern followed by Ross Hook (RH). Doge corrected and formed a Descending Broadening Wedge pattern

Arief Makmur 09:46 2025-02-21 UTC+2

Technical Analysis of Intraday Price Movement of Ripple Cryptocurrency, Friday, February 21, 2025.

Although currently Ripple is still below the downtrend line, the appearance of Convergence between price movements and the Stochastic Oscillator indicator (5,3,3) gives an indication that in the near future

Arief Makmur 09:46 2025-02-21 UTC+2

Bitcoin: what drives new wave of interest in flagship crypto

By the end of 2024, institutional demand for Bitcoin reached a new peak. According to analyst Sam Callahan, the number of institutions holding long-term investments in Bitcoin has grown

Ekaterina Kiseleva 18:07 2025-02-20 UTC+2

Another Spot XRP ETF Application Submitted to the SEC

Bitcoin and Ethereum resumed their upward movement yesterday, following the overall positive trends observed in the U.S. stock market.Today, news emerged that the SEC has accepted another application

Jakub Novak 10:36 2025-02-20 UTC+2

Trading Recommendations for the Cryptocurrency Market on February 20

Demand for Bitcoin and Ethereum is back. Significant buying activity was noted during the Asian trading session, similar to the previous day. Bitcoin has risen toward the $97,000 mark, while

Miroslaw Bawulski 08:44 2025-02-20 UTC+2

Bitcoin: Uptrend Remains Intact

BTC/USD: Bitcoin's rally is far from over. Investors should take into account both macroeconomic and political factors that influence the cryptocurrency market. With increasing institutional demand and Bitcoin's growing global

Jurij Tolin 23:52 2025-02-19 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.