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Best January since 2013? 5 things to know in Bitcoin this week

Best January since 2013? 5 things to know in Bitcoin this week

Bitcoin (BTC) starts a key week with a familiar cocktail of price spikes mixed with fear that the bear market will return.

After sealing its highest weekly close in almost six months, BTC/USD remains over 40% up year-to-date with the monthly close just 48 hours away — can the gains hold?

Against all odds, Bitcoin has rallied beyond expectations this month, making January 2023 so far its best in a decade.

Throughout, concerns have called for an imminent comedown and even new macro BTC price lows as a state of disbelief swept the market.

That grim turnaround has yet to come to fruition, however, and the coming days could thus turn out to be a crucial period when it comes to Bitcoin’s long-term trend.

The catalysts are hardly in short supply — the United States Federal Reserve will decide on its next rate hike this week, with Chair Jerome Powell also giving much anticipated commentary on the economy and policy.

The European Central Bank (ECB) will make the same decision a day later.

Add to that the psychological pressure of the monthly close and it is easy to see how the coming week could be one of the more volatile in Bitcoin’s recent history.

Buckle up as Cointelegraph takes a look at five key issues to consider when it comes to BTC price action.

Bitcoin price eyes $24K with FOMC volatility predicted

Bitcoin continues to defy naysayers and shorters alike by spiking ever higher on lower timeframes.

The weekend proved no different to others in January, with BTC/USD hitting $23,950 overnight into Jan. 30 — a new five-and-a-half-month high.

The weekly close achieved the same feat, Bitcoin nonetheless failing to tackle the $24,000 mark for a final flourish.

BTC/USD 1-week candle chart (Bitstamp). Source: TradingView

At the time of writing, $23,700 formed a focal point, data from Cointelegraph Markets Pro and TradingView showed, with U.S. markets yet to begin trading.

Nonetheless, at current prices, Bitcoin remains up a striking 43.1% in January, making it the best month of January since 2013 — Bitcoin’s first well-known bull market year.

BTC/USD monthly returns chart (screenshot). Source: Coinglass

Market analysts are meanwhile keen to see what will happen around the Fed rate hike decision on Feb. 1. A classic source of volatility, the event could impact the monthly candle significantly, only for BTC price action to change tack altogether soon afterward.

“Perhaps with a little assistance from FOMC volatility? Not a prediction, but certainly a trade setup I’d…

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