Bitcoin Price Bounces to $36K, As Everyone Now Awaits for the Fed and Jerome Powell Tomorrow

The uncertainty will soon end. We will then have a clearer direction for the market in the short term.

Image: Hedgeye

Fear continues to dominate the Bitcoin market. This is the prevailing sentiment in all financial markets in recent days. The session on January 24, 2021, was very interesting to watch on Wall Street. The S&P 500 and the Dow Jones initially opened in the red, before seeing the trend reverse to end the session in the green with the S&P 500 rising above 4,400 points.

The VIX, which measures volatility on Wall Street, is now at 32. As I said at the beginning of this year, you need to be prepared for the volatility that will dominate all markets in the months to come.

Economic conditions are more than uncertain, as is the actual monetary policy that the Fed will conduct. As you know, investors hate uncertainty. It is this uncertainty that leads to greater volatility.

Just before Wall Street turned green yesterday in the second half of the session, we saw the price of Bitcoin make a strong rebound after touching the $32K area support:

The rebound allowed the price of Bitcoin to come in above $37K afterward, before a slight pullback. The price of Bitcoin is currently around $36.4K as I write this. Even if this rebound is positive, it doesn't change the current situation for Bitcoin much.

If you take a step back and look at a 1D-timeframe, you can see this very clearly: