Bitcoin price has officially entered a bear market with its drop to $32,917. After this sharp movement of the BTC price, especially on January 24, the hopes were raised.

Although the Bitcoin price made a hard landing below $34,000 and recovered, the rise is still not fully confirmed. Looking at the BTC/USD pair, it is seen that a strong move above $ 38,000 is required for the rise to be registered.

The leading cryptocurrency is currently trading around $36,500, which coincides with the 100 hourly simple moving average, which indicates danger.

Previously, there was a close above $ 35,450 in the BTC / USD pair, and it is known that this is actually the last line of the bear market. If BTC manages to maintain its price during the day, the targets of $ 37,000 and $ 38,000 may follow.

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The first signal of a reversal for BTC will come with the break of $38,000. However, the current market volume seems insufficient to do so. If the price declines to the opposite direction, below $34,000, $31,000 can be expected here.

At the moment, the RSI is above the 50 level, indicating that the uptrend could actually come. MACD, on the other hand, is losing its position in the bullish zone and bears have provided dominance. The most important immediate support for BTC is the $34,000 level.

BTC is just over $36k as of the time of publication and is trying to maintain this price.

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Nasdaq and S&P 500 drop for third week in a row

Recently, Bitcoin has been in high correlation with the stock market. Wall Street fell significantly on Thursday. The Nasdaq is down almost 5 percent this week, while the S&P 500 is down for the third week in a row. US 10-year treasury yields rose earlier this week, with rising rates forcing investors to abandon their positions in riskier assets like Bitcoin. Yields move in the opposite direction to prices. The US Fed contraction is bad for unregulated markets like cryptocurrencies.

Contraction is the process by which the Fed slows its purchases of new assets, including securities and bonds. The Fed's contraction and rising interest rates could cause global liquidity to contract and ultimately affect the Bitcoin price. The crypto industry has faced several regulatory threats lately due to skepticism towards the rapid growth of digital assets.