ETH needs BTC to return to $23,500 to support a run towards $1,700

On Monday, Bitcoin (BTC) fell by 3.86%. BTC reversed the 3.11% gain from Sunday, and BTC ended the day at $22,830. BTC ended the day below $23,000 for the first time in six sessions.

A mixed start to the day saw BTC surge to an early peak of $23,785 before retreating. Failing to reach the first major resistance level (R1) at $24,139, BTC fell to a late low of $22,500. BTC pulled back through the first major support level (S1) at $23,177 and briefly through the second major support level at $22,607 before ending the day at $22,830.

Fed fear and the Nasdaq index send the cryptocurrency market south

On Monday, there were no US statistics for investors to look at. The lack of statistics has investors focused on tomorrow’s Fed rate decision and Fed Chair Powell’s press conference.

While the bets for a 25 basis point rate hike are bullish, an optimistic Fed chairman could weigh on appetite for riskier assets. Unemployment in the US is well below the Fend’s mandate as inflation continues to rise. While cracks appear in the US economy, the Fed chairman will be keen to ensure that inflation is not stable.

There were no updates on the Shanghai hard fork to distract investors. While the hard fork is another bullish event, a delay beyond March could cause ETH to give up some of its gains in 2023.

For the next day, the lack of hard fork updates will leave Bitcoin and Ethereum in the hands of the US economic calendar and the NASDAQ index. Later today, US Consumer Confidence figures for January will attract attention, although these numbers are unlikely to influence the Fed Chairman’s policy outlook.

But investors should also keep an eye on the cryptocurrency news feed for updates on FTX, Genesis, and SEC v Ripple.

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