Bitcoin Could Possibly Gain Higher, Fed Raised Interest Rates By 0.75 bps

  • The price of bitcoin increased beyond $20,000 but dipped below $21,000.
  • On the 4-hours chart, it broke a crucial negative trend line that served as resistance near $19,370.
  • If the price breaches the $20,700 and $21,000 marks, the upward trend might resume.
  • After encountering obstacles, the EUR/USD and GBP/USD progressively declined.

Technical Analysis of the Bitcoin Price

From the $18,500 area in relation to the US dollar, the price of bitcoin started to steadily rise. BTC/USD moved into a bullish zone after rising above the $19,500 and $20,000 resistance levels.

The pair stabilized above the $20,000 mark, the 100 simple moving average (4-hour red) and the 200 simple moving average, as shown on the 4-hour chart (green, 4-hours).

On the same chart, the price throughout the rise breached a significant negative trend line that served as resistance near $19,370. The $21,000 resistance zone was tested last. Prior to a downward reversal, a peak was established around $21,009.

An early support for the downside is located close to the $20,150 mark. The $19,800 region serves as the primary breakdown assistance. In the following days, bitcoin might fall toward the $19,000 support if there is a downward break.

The price is up against a strong resistance level at $19,700. The $21,000 mark serves as the primary resistance. A close above $21,000 might perhaps signal the beginning of another gradual rise in the coming days.

In the hypothetical situation, the cost might increase to around $22,000. Any further increases might lay the stage for a move in the direction of the $22,500 mark.

Economic News To Trade Today

  • BoE Interest Rate Decision: Expected 3.00%, up from the previous 2.25%.
  • US Initial Jobless Claims: 220K expected, up from 217K in the previous period.
  • US ISM Services PMI for October 2022 is forecast at 55.5, up from the previous reading of 56.7.
Amogo Solomon is a Broker-Dealer/Market Research analyst and writer in ACT Brokers with a background in Computer Science, Data Analytics, and Forex Broker Dealing. He specializes in Forex Dealing, markets Analysis, Currency research, forex fundamental and technical analysis, and Monitoring of Forex trends, Stocks, Equities, Cryptos, and Commodities. He possesses strong technical and analytical skills and is well known for his entertaining and informative analysis of the global economy, fiat currency, commodities, Stocks, Indexes, Futures, and Options markets. He held a Bachelor's degree in Computer Science and Nanodegree in Programming for Data Science Enterprise.