Bitcoin analysts say the bulls have a lot of work to do as the BTC price enters consolidation. Bitcoin (BTC) gave way to sideways movements, replacing six-week highs on October 27. While moving in this direction, it achieved consolidated gains.
“Surprisingly Bitcoin remains calm at these levels”
According to TradingView data, BTC hit local highs of $21,012 the previous day. Later, it declined to $ 20,500 levels. The leading cryptocurrency was in line with US stocks at the Wall Street opening.
Meanwhile, the US dollar index (DXY) started to take back losses on the day. Thus, it provided a headwind against risk assets that eased for most of the week. Meanwhile, DXY had seen its lowest levels since mid-September.
US dollar index (DXY) 1-hour candlestick chart / Source: TradingViewGross domestic product (GDP) data showed a recovery for the US economy in the third quarter. This data was important prior to the Federal Reserve’s decision on interest rates. Eric Winograd, director of advanced market economics research at AllianceBernstein, comments:
This GDP figure is weaker than before, although the headline is positive in terms of the signal it sends about the strength of the economy going forward.
In Europe, the European Central Bank (ECB) increased key interest rates by 0.75%, in line with expectations. Michaël van de Poppe, founder and CEO of Eight trading firm, shared:
Today is the big day. The ECB comes from the US with policy and GDP figures. To be honest, Bitcoin remains calm at these levels. I would have expected a more substantial fix since the last move.
Meanwhile, as you follow on Kriptokoin.com, the latest data from CME Group’s FedWatch Tool has increased the probability of the Fed copying the 75 bps increase to 90.8% on the day.
Fed target rate probabilities graph / Source: CME GroupWill BTC go to $14,000?
Popular crypto analyst nicknamed Rekt Capital analyzed the weekly Bitcoin chart. The analyst says that it is necessary to retrace the area just below $22,000 for the uptrend to continue. It is emphasized as an important region in this direction. “BTC is slowly approaching the red resistance area,” he wrote in a post on October 26.
BTC explanatory chart / Source: Rekt Capital / TwitterMeanwhile, another analyst alias Crypto Capo says that if the bulls want $23,000 to happen, $21,500 should form the basis for consolidation. The analyst’s “master scenario” remains as a return to new macro lows for BTC, potentially reaching $14,000.
BTC caption chart /Source: Crypto Capo / Twitter
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