Bitcoin Price Outlook: BTC/USD Bounces Back Despite A Strong US Dollar
Date
11/3/2022 6:07:06 PM
(MENAFN- DailyFX) bitcoin (BTC/USD) Talking Points: ( ) prices shrug off Fed's hawkish commentary BTC/ supportive above $20000 as prices rise back into tight range strength supported by and rising yields
Bitcoin Prices Shake Off Hawkish Fed CommentaryThe recent rate decision rattled markets after Fed chair Jerome Powell confirmed that the central bank will continue to raise its key interest rates until shows significant signs of easing. With Bitcoin prices rising to a weekly high of $20802 prior to the commentary, a change in sentiment forced BTC/USD lower before finding support above $20000.
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Although markets had already priced a , the press conference that followed wasn't completely aligned with market expectations.
With Powell of the to make provision for additional rate hikes over a longer period of time, higher yields and a stronger USD caused , and the to plummet. However, unlike historical meetings that once sent Bitcoin on a rampage, the major cryptocurrency has recently failed to replicate the moves seen in the equity market.
Bitcoin (BTC/USD) Price ActionAfter a temporary retest of $20039, BTC/USD was quick to bounce back, driving prices into the same mundane range. While the continues to threaten demand for , a break of the broader zone of support and resistance between $18000 and $22000 is still required to drive price action either way.
Bitcoin (BTC/USD) Daily Chart
Chart prepared by using TradingView
With the October high now holding as imminent resistance at $21078, another layer of horizonal support has formed around the $20500 mark. While technical and psychological levels assist in establishing firm levels of , a clear break of the above-mentioned levels may be necessary for either bulls or bears to gain momentum. If prices fall below $20000, the next zone of support remains at the December 2017 high of $19666 with a break below bringing the September low back into the spotlight at $18157 which could provide opportunity for bearish continuation and a potential retest of the June low at around $17592.
--- Written by Tammy Da Costa, Analyst for DailyFX.com
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