Bitcoin (BTC) Price Set For Bigger Breakout After Breaching $21,000?

Bitcoin (BTC) Price News: After an impressive rally all the way to the $21,000 range, Bitcoin (BTC) price saw a sharp decline in what could perhaps be a correction phase. However, going by the historically high buying interest from traders, the BTC price could well be up for a huge breakout in either direction. However, under the current scenario, a price rise could be more likely at least in the short term. Also, the crypto market could be preparing for the interest rate decision in the FOMC meet in February.

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After the US Fed’s Federal Open Market Committee (FOMC) announced an interest rate hike by 0.50% in December 2022, the crypto market did not show much deviation as it was on expected lines. The first FOMC meet in the year 2023 is scheduled for February 1. In a latest, JP Morgan Chase CEO Jamie Dimon predicted that there is a chance of higher interest rates in coming future. Speaking on the sidelines of the World Economic Forum, the CEO said the rate could probably go higher than 5% due to underlying inflation.

High Optimism Among Traders

If this prediction goes on to be true, reduced liquidity in the market could mean crypto prices going downwards. Meanwhile, BTC trading activity is pointing to the possibility of a bigger Bitcoin breakout. In fact, interest in BTC is at an eight month peak after it recently breached the $21,000 mark.

“Traders are treating Bitcoin’s signs of life as a signal that a bigger breakout may be looming soon. The rebound back over $21,000 in January has resulted in the crowd showing the most optimism they have had in markets since July.”

As of writing, $20,742 down 3.40% in the last 24 hours, according to CoinGape price tracker. For the first time after November 2022, the BTC price broke resistance at $21,000 earlier in the week.

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