Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the author’s opinion.

  • BTC, ETH in a price consolidation amid an upcoming FOMC meeting next Tuesday
  • Both assets could break out above their price ceiling.

Investors expect a normal quarter-rate hike at the Federal Open Market Committee [FOMC] meeting on Jan 31/Feb 1. Fed watchers believe a 25 basis point rate hike is a dovish approach that would positively impact markets, including the crypto sector.

Bitcoin [BTC] price prediction: Is a retest of the $23K zone likely?

Source: BTC/USDT on TradingView

Bitcoin [BTC] remained bullish after US inflation declined, according to CPI. Over the weekend, the King Coin posted a 10% rally. It bounced off the $20K zone and recaptured the $23K level before a bearish order block at $23209 forced it into a short-term correction.

At press time, BTC’s Relative Strength Index (RSI) on the three-hour chart was at 59, thus bullish. In addition, the On-Balance-Volume (OBV) turned positive after being in negative territory for an extended period in 2022. It shows that more BTC was sold than bought last year, and the trend only changed on Friday after OBV turned positive.

The upward trend could attract more demand from retailers dodged by FOMO. A dovish FOMC could also push BTC to retest $23.21 or break into the $24K zone. However, the bulls will have to overcome the $22,999.29 hurdle before making such a move.

Alternatively, BTC could fall below $22.50K if the bears take control, negating the bullish bias described above. Such a decline could be held in check by the 26-period EMA (exponential moving average).

Ethereum [ETH] Price Prediction: The $1650 obstacle persists, but …

Source: ETH/USDT on TradingView

Ethereum’s [ETH] recent rally was blocked by a key selling pressure zone (red). Past attempts to go beyond the zone have failed, forcing ETH to oscillate between $1,600 – $1,678 since January 21. 

On the three-hour chart, the RSI faced rejection at the midpoint and moved sideways. The RSI value was 55 at the time of publication, indicating a mild bullish signal. ETH could overcome the selling pressure zone and retest the $1,678 level or break above it into the $1,700 region in the next few hours/days. A favorable FOMC announcement and bullish BTC could accelerate the upswing next week. 

However, ETH could drop to the demand zone of $1,600 (green) if the FOMC release is hawkish or BTC turns bearish. Therefore, investors should track next week’s announcement to gauge the possible price direction for the two assets.