- October 13, 2023
- Posted by: [email protected]
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Bitcoin’s price experienced a notable 3% dip in response to the Federal Open Market Committee’s (FOMC) recent assertive remarks. The primary focus of these statements was on the minutes from the Federal Reserve meeting, where policymakers emphasized the need for ongoing restrictive policies. They acknowledged the delicate balance between the risks of excessive tightening and the necessity of guiding inflation towards a 2% trajectory.
The upcoming release of the US’s annual headline inflation data for September, expected to slightly drop to 3.6% from August’s 3.7%, has captured significant attention. Concurrently, core annual inflation is predicted to dip slightly from the previous 4.3% to 4.1%. The prevailing concern in financial discussions is whether inflation might prove to be more resilient than initially estimated on its path to the 2% target.
While the immediate impact of this complex scenario on the markets might be limited, its unfolding will likely redefine how data interpretations are approached. Attention is particularly focused on the bond market’s reactions, given yesterday’s contradictory trends, as it promises to provide valuable insights into Bitcoin’s future trajectory.
Bitcoin, the flagship of the crypto world, is currently trading at $26,800, showing noticeable market activity. Over the past 24 hours, Bitcoin has experienced a 1% decline in its price, based on available data. Its 24-hour trading volume is a substantial $12.71 billion, reaffirming its top position on CoinMarketCap. The cryptocurrency’s market cap is approximately $523.28 billion, and its circulating supply stands at 19,511,187 BTC, approaching the maximum limit of 21,000,000 BTC.
A more detailed analysis of the 4-hour chart provides insights into Bitcoin’s likely path. The key level of $26,486 serves as a foundational support point. In the event of a rally, Bitcoin will encounter immediate resistance at $28,020, followed by additional barriers at $29,032 and a significant one at $30,565. Conversely, if a decline continues, initial support emerges at $25,474, followed by cushions at $23,941 and $22,929.
Technical indicators reflect a Relative Strength Index (RSI) at 46, indicating a slight bearish sentiment, although not an immediate overbought or oversold condition. Additionally, the 50-day Exponential Moving Average (EMA) at $27,253, slightly above the current price, suggests a short-term bearish trend. Recent chart patterns reveal that Bitcoin broke below an upward channel at $27,350, and the bearish crossover of the 50 EMA amplifies the selling sentiment in the market.
In conclusion, the current trend for Bitcoin is bearish, particularly if it remains below the $27,253 mark. The market dynamics and technical analysis advise traders to exercise caution and remain vigilant for any potential breakouts or shifts in either direction.
Bitcoin’s performance is significantly influenced by economic data and the ongoing narrative in traditional financial markets, making it crucial for traders to stay attuned to these factors as they assess its future movements.
