Oct 20, 2022
VOT Research Desk
The decision by the Fed to raise interest rates appears to be having a very positive impact on the price of Bitcoin. The strong association with the stock market can be used to explain some of this relationship.
Additionally, BTC is being significantly impacted by high-impact macroeconomic news that also has an influence on traditional markets. The Consumer Price Index (CPI) print on October 13 was the most recent such report, and it caused a lot of volatility. BTC has since made mediocre movements that have continued to range.
Investors should anticipate a favorable movement in the price of Bitcoin between now and the following Fed meeting on November 1 and 2 due to technological advancements.
The price of Bitcoin is presently resting at the bottom of a range that spans from $32,427 to $17,593.
After a temporary rejection at the 30-day EMA at $19,474, BTC is looking for a support level that will counteract the selling pressure, give it time to recover, and serve as the catalyst for a turnaround.
If successful, the 30-day EMA and the $20,306–$20,737 resistance range will once more be faced by the price of Bitcoin.
For the major crypto currency to fill the inefficiency at $22,048 or retest the 200-week Simple Moving Average (SMA) at $23,710, it is imperative that these obstacles be turned into a footing.
According to forecast, the price of Bitcoin may have already found solid support to start a turnaround.
The Consumer Price Index (CPI) report on October 13 caused an 11% increase, and after that, BTC saw a mean reversion to $18,934.
However, the decreasing support trend line that connects the swing highs since May 31 and this midpoint are congruent.
This support combination increases the likelihood that a rally in the price of bitcoin will start from this point. To be successful, BTC purchasers must get through the fore mentioned obstacles.
Approximately 4.43 million addresses that acquired 2.72 million BTC at an average cost of $21,793 are “Out of the Money,” according to Into the Block’s Global In/Out of the Money (GIOM) model. Since the investors who are “Out of the Money,” as identified by the GIOM, will be pushing prices higher so they can dump their positions without suffering a loss, the possibility for a rise up to $22,000 is considerable and plausible.
However, a retest of $28,000 is very improbable – for the same reason – as the rally may run out of steam without a meaningful jump in positive momentum due to the increased selling by traders aiming to achieve breakeven.
