A Look at Bitcoin, the Crypto Market Ahead of the Fed Rate Decision: What to Watch – Bitcoin (BTC/USD)

A Look at Bitcoin, the Crypto Market Ahead of the Fed Rate Decision: What to Watch – Bitcoin (BTC/USD)

Bitcoin Bitcoin / US Dollar Trading was lower on Tuesday after falling below $19,000 during the 24-hour trading session on Monday.

Monday’s drop proved to be a buying opportunity for the bulls, who caused the major cryptocurrency to close the session slightly higher. On Tuesday, the bulls were relatively weaker, although all price action was taking place in a range on Monday, putting Bitcoin in an inside bar pattern.

An inner column often indicates a consolidation. There are a variety of tools one can use for technical analysis, including from Ninja Trader. Ninja offers advanced charting and other products as part of its trading suite designed to help investors navigate the markets. The platform allows its members to automate and execute trades and test trading ideas through simulation.

Bitcoin will likely consolidate in anticipation of the upcoming Federal Reserve decision on how to raise interest rates, expected on Wednesday at 2 PM ET.

Consumer Price Index data released by the US Labor Department last week showed that inflation remained above expectations in August, despite four separate rate hikes that began in March, May, June and July. The news brought concerns that the Federal Reserve may raise interest rates by 0.75% or even a full percentage point later this week.

After the decision, the volatility of bitcoin – and the stock market – may increase. Bitcoin’s further direction, at least in the short term, is likely to become known. It should be noted that the initial reaction to the smaller timeframes can be “fake”, and traders should be patient.

Once Bitcoin chooses its direction, which is likely to be along with the S&P 500, the rest of the cryptocurrency market is likely to follow suit.

Want a live analysis? Find me in the BZ Pro lounge! click here For a free trial.

Bitcoin chart: Bitcoin started trading in a downtrend on September 13th and made a consistent series of lower highs and lower lows. Bitcoin’s latest low was formed on Sep 17th at USD$183 and the latest low was printed at USD18255 on Monday.

  • During the 24-hour trading session on Tuesday, Bitcoin was printing an inside bar pattern, which is tilting to the downside as the overall trend is down. Traders can monitor the breakout up or down from the main bar on Monday at above-average volume on Wednesday to gauge the future direction.
  • If bitcoin breaks higher from the inside bar pattern, the crypto will reclaim the eight- and possibly 21-day exponential moving average as support, giving bullish traders more confidence in the future. If the crypto is unable to recover indicators as support, the eight-day EMA may continue to push Bitcoin lower.
  • Bitcoin has higher resistance at $19,915 and $21,313 and support below at $17,580 and $16,000.

See also: Will Dogecoin reach 10 cents again by 2023? The survey says…

Image via Shutterstock.

Source link

Leave a Comment