Bitcoin tests $25,000 in another Fed-driven week

Cryptocurrencies start the week with a new bullish turn. Bitcoin (BTC) falls slightly but maintains the level achieved late last Friday and Ethereum (ETH), meanwhile, is trading flat and close to $1,700.

Volatility is still present in the market and the world's largest cryptocurrency is in a resistance zone that it has not been able to break. Bitcoin seems to have proven what the next stage is if it wants to achieve recovery in 2023 last week, making rapid gains and even touching new six-month highs. All in all, macroeconomic reality has won out over market optimism, which has several key appointments this week.

The most important, as usual, has to do with the Federal Reserve (Fed). After opting for a 25 basis point hike at the beginning of the month, the market believed that the central bank's move anticipated the end of interest rate hikes. However, the latest data, such as inflation and employment data, together with statements from key Fed members, suggest that the near future is not as rosy as it was made out to be.

Be that as it may, the minutes of the latest Fed conclave will be published on Wednesday. The document is expected to give more clues as to what a pause in rate hikes might look like. On the other hand, some point out that the minutes will not reflect the latest macroeconomic readings, already discounted in the market, so their usefulness could be diminished.

For his part, Joe DiPasquale, CEO of cryptocurrency fund manager BitBull Capital, pointed out that $23,000 is the new support level for Bitcoin. Likewise, the expert believes that this week will be key for the reigning cryptocurrency to reach $30,000, if it is capable.

"It was critical for Bitcoin to reclaim $23,000 if we were to see more upside action. With February coming to an end, another bullish monthly close may be what the market needs for Bitcoin to test $30,000," he added.

Javier Molina, senior market analyst at eToro, highlighted that, after "the false break of the $22,000 area," there is a "bullish breakout targeting $25,000 that, for the moment, has stopped right there."

"This level is very important because if it is broken, it would lead to the closing of open short positions at these levels and the beginning of an upward impulse with a target at $28,000. However, not being able to reach $25,000 opens the door to a correction to $22,000. This area is very important because, if it is lost, we will go straight to $20,000", explained Molina.

In the rest of the market, there were few notable movements except for Solana (SOL), which rose by 12.7%. Cardano (ADA) increased 1.3% and polygon (MATIC) dropped 1.7% after several days of significant gains. Shiba inu (SHIB) soared 3.7%.