Bitcoin, Ethereum, and altcoins under pressure; key supports tested as investors await U.S. economic data and Fed guidance this week.
Crypto markets are set for a volatile week as several major U.S. economic events take place, increasing uncertainty among investors. How crypto prices move in the coming days may indicate whether the market is heading for a deeper correction or preparing for a bullish move.
The key events start on January 28 with a speech by Federal Reserve Chair Jerome Powell. This will be followed by the release of U.S. initial jobless claims data on January 29.
The week concludes on January 30 with U.S. Producer Price Index (PPI) inflation data and rumors of a U.S. government shutdown. Both developments could strongly impact the cryptocurrency market.
Jerome Powell Speech and Impact on the Crypto Market
Historically, U.S. government shutdowns have negatively impacted the crypto market. During the previous shutdown, Bitcoin dropped sharply, raising fears that similar selling pressure could return if uncertainty increases.
At the same time, markets expect the Federal Open Market Committee (FOMC) to keep interest rates unchanged. While this outcome is mostly priced in, investor reaction will depend on Jerome Powell’s comments. A hawkish tone could lead to widespread sell-offs, while hints of future rate cuts may support a bullish move in crypto markets.
Bitcoin Price Forecast Ahead of FOMC Meeting Today
Bitcoin has been moving inside a parallel price channel since November, but recently slipped below a key support level, raising fresh concerns about a possible shift in trend. This move could either be a false breakdown meant to shake out overleveraged long positions or the beginning of a more sustained bearish phase.
For now, as long as Bitcoin trades below the $92,000 mark, it is viewed as being in a higher-risk zone. Technical charts suggest prices could fall toward the $85,000-$86,000 area, with stronger weekly support sitting lower, around $75,000-$77,000. If BTC Price fails to move back above the channel’s resistance, the market could see a deeper correction over the next two to three weeks.
Ethereum and Altcoins Under Pressure
Ethereum price is also under pressure, struggling to hold its channel support. On the weekly chart, ETH remains capped below the key $3,000 resistance level. If this barrier continues to hold, there is a growing risk of a move down toward $2,700, with additional support expected between $2,300 and $2,700.
A clear break below $2,700 could speed up losses toward the $2,261 zone.
The broader altcoin market looks even more fragile. The Total3 market capitalization index, which tracks crypto assets excluding Bitcoin and Ethereum, has already slipped below its channel support. If the $788 billion level does not hold, the next major support appears near $686 billion, signaling the possibility of heavier selling pressure across smaller-cap tokens.
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