Bitcoin dips 8% from highs as trader demands BTC bulls reclaim $37.5K

Bitcoin (BTC), which had risen from multi-day highs Jan. 27, fell as bulls cooled their enthusiasm after the United States Federal Reserve meeting.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

Bitcoin falls below $37,500

Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD was losing some of its gains. It had reached $38,950 on Bitstamp.

The pair then returned to $36,000, where it was trading at the writing of this article.

Market commentators started to hope for a stronger weekly close as momentum built. However, things were much more bleak now.

“Bitcoin rejected by $38K and hit first important level support at $36K here,” Michael van de Poppe, a Cointelegraph contributor, stated to his Twitter followers.

“Might see a temporary bounce, but anything below $37.5K is not a sign of bullishness.”

BTC/USD chart annotated with support and resistance areas. Source: Michael van de Poppe/Twitter

Van de Poppe was among others who expressed dissatisfaction at the Fed’s meeting. In particular, they were disappointed with the lack of policy information from Fed Chair Jerome Powell.

“With inflation well over 2 percent and a strong labour market, the Committee believes it will soon make sense to increase the target range of the federal funds rate,” reads a statement from the Federal Open Market Committee.

“The Committee decided that it would continue to lower the monthly pace at which its net asset purchases were made, and bring them to an abrupt halt in March.”

The crypto markets were left with few macro cues to respond to, which meant that a paradigm shift in the price behavior has yet to occur.

Crypto liquidations pass $300 million

Altcoins lost several percentage points in the same way as Bitcoin, adding to the week’s overall losses.

Related: Bloomberg analyst sees bounce in Bitcoin market, Bitcoin pundits split on BTC floor

Ether (ETH), which fell below $2,500, was still down 22% in the past seven days.

BITSTAMP: ETH/USD 1-hour candle charts Source: TradingView

Other coins fared better with Dogecoin, DOGE, retaining most its progress and Cardano, ADA trading flat at $1.06.

However, not everyone survived the Fed. Data from Coinglass, an on-chain monitoring resource, confirmed that total cross-crypto liquidations exceeded $320 million.

Chart of crypto liquidations. Source: Coinglass