• Bitcoin is trading sideways in the first week of 2023, with no clear direction.
• Altcoins are blooming, with many recording profits on high timeframes.
• The U.S. released mixed economic data, with a lower-than-expected unemployment rate of 3.5%.
It’s the start of a new year and the cryptocurrency market is off to an uncertain start. Bitcoin (BTC) is trading sideways in the first week of 2023, with no clear direction. After a rejection from a critical resistance zone, the cryptocurrency returned to its range and could be gearing up for a re-test of support. Despite the lack of clear direction, altcoins are blooming, with many recording profits on high timeframes. As of this writing, Bitcoin (BTC) trades at $16,700 with sideways movement in the last 24 hours. In the previous seven days, BTC records similar price action.
Investors are uncertain of what direction the market will take due to macroeconomic developments and the U.S. Federal Reserve (Fed) monetary policy. The Fed uses economic data to gauge the efficacy of its monetary policy, such as the unemployment rate, and investors are hesitant to trade in any direction due to these developments. Today the U.S. released new economic data, but the results were mixed. The unemployment rate printed 3.5% for December 2022, which was lower than the market expected, but hourly earnings were also lower than anticipated.
In the short term, investors are waiting for the market to digest the news and make a decision on the direction of Bitcoin and other cryptocurrencies. Technical analysts are keeping a close eye on the 4-hour chart of BTC, which could signal the direction of the cryptocurrency. It’s currently too early to tell where the market is going, but investors are keeping a close eye on developments to make sure they don’t miss any potential opportunities.
In the meantime, altcoins are continuing to perform well, and many analysts are expecting a strong start to the new year. The cryptocurrency market is still in its infancy, and there’s plenty of room for growth. Investors should keep an eye on the market, as there could be some exciting opportunities in the coming days and weeks.