The BTCUSDT pair rebounded 0.81% to $36,958 on Tuesday, January 25. The uptrend ran into resistance at $37,545 on the back of sluggish gains in US stock indices. The rebound in equities was short-lived as investors remained wary over the Fed's anti-inflation fighting measures and tensions surrounding Ukraine.
Buyers jumped in during the European session in the range of $36,600-37,200. On Wednesday, BTC extended gains amid rising US index futures, up over 1.3% at $38,248.
The Fed’s two-day meeting remains in the spotlight. The central bank could step up the pace of interest rate hikes and shrink its portfolio of US Treasury bonds, which have inflated the balance sheet to $8.8 trln.
On the daily TF, the trendline crosses through the $41,650 level ($41,350 for futures). After a 52% decline in BTC over the past 75 days, nothing prevents buyers from retracing to the trendline, which originates from the top of $69,000. Interim resistance levels lie at $38,670 and $40,690.
A rally during the correction should be expected only along with upside in stock indices. Support is located at $35,700. The BTC bears are in control of the market, so they could quickly push down the price action. Fed Chair Powell's press conference will start at 19:30 GMT.