The end of the small Bitcoin rally; Should we wait for further price reduction?
It seems that the upward trend of Bitcoin in the past few days has been affected by the prevailing economic conditions. After dropping about $800 from yesterday’s peak price, Bitcoin is back at the $20,000 mark; In a situation where it seems very difficult to stabilize the price and start the growth process again.
To Report Bitcoin is currently trading around $20,171 on the Bitstamp exchange, after hitting $21,012 yesterday, data from Cointelegraph, TradingView and Cointelegraph Markets Pro show.
With the S&P 500 flat and the Nasdaq down 1 percent (at the time of writing) on Wall Street, Bitcoin was unchanged in line with the US stock market.
At the same time, the US Dollar Index (DXY) began to recoup its daily losses. This prevented riskier assets from rising in price, which had remained stagnant for most of the week.
The release of gross domestic product (GDP) data ahead of the Federal Reserve’s announcement of new interest rates showed that the US economy grew in the third quarter of 2022.
However, Eric Winograd, director of developed markets economics research at AllianceBernstein, told the Financial Times:
this number [تولید ناخالص داخلی] It’s weaker than the previous number in terms of the message it sends about growing economic strength, even if it’s positive on the surface.
As expected, the European Central Bank (ECB) raised key rates (the interest rate at which banks can borrow if they are short on reserves) by 0.75 percentage points.
Michael van de Poppe (Michaël van de Poppe), founder and CEO of “Eight” trading company, said:
Today is a big day; Because the European Central Bank is entering a conflict with the United States with this policy and its GDP numbers. Honestly, Bitcoin will remain at this price level and expect a significant price correction before starting to grow.
The latest data from CMA Group’s FedWatch tool shows a 90.8% probability of a 0.75 percentage point interest rate increase by the Federal Reserve.
Analyzing the weekly chart of the Bitcoin/USD price, popular trader Rekt Capital pointed to the area below $22,000 as an important area for the price to recover and continue the upward trend. He wrote an analysis on October 26 (November 4):
Bitcoin is slowly approaching the red resistance zone.
Il Capo of Crypto, on the other hand, said that if the bulls want to see Bitcoin reach $23,000, establishing resistance at $21,500 as a base is essential.
His main prediction is to create a new price floor for the Bitcoin/USD pair, possibly at the $14,000 mark.
