Bitcoin
Bitcoin Price Breaks Above Crucial $28,000 Level Ahead of FOMC Speeches
Bitcoin price was hovering around its highest level since August on Monday ahead of comments by Fed Chair Jerome Powell that could offer clues on future interest rate moves. The premier cryptocurrency hit an intraday high of $25,580, slightly above the bullish support level of $28,145, before pulling back. At the time of writing, Bitcoin was trading at $28,098.
Crypto Rally
Bitcoin price was in the green on Monday, building on previous gains after jumping more than 3% over the weekend. The asset’s total market cap has jumped by nearly 4% over the last day, while the total volume of BTC traded over the same period climbed by 192%. Major altcoins, including Ethereum, BNB, XRP, Solana, and Cardano, among others, have also edged higher.
Cryptocurrency prices started the new month on a positive note, improving market sentiment. The global crypto market cap has increased by 2% over the past 24 hours to $1.11 trillion, with the total crypto market volume up by 39.50% for the same period. Bitcoin’s total market cap has also nudged 0.77% higher to 49.57%.
The Crypto Fear and Greed Index, which measures the crypto sentiment by market participants, improved slightly to a fear level of 47, slightly higher than the fear level of 34 recorded last month. As such, the index suggests that risk appetite is rising, and a breach above the neutral level could increase the buying pressure.
While the immediate catalyst behind Bitcoin’s rally remains unclear, the positive crypto market outlook played a role in the asset’s bullish move. Additionally, there were several ether futures EFTs set to be launched on Monday, which could be a positive sign for the crypto sector. Crypto market participants are still waiting to see whether the US Securities and Exchange Commission (SEC) will approve a Bitcoin EFT in the coming months.
Economic Concerns
Investors will be closely watching comments by the US Federal Reserve Chair Jerome Powell on Monday, hunting for clues on the economic outlook and future monetary policy paths. Several members of the Federal Open Market Committee (FOMC) are also expected to speak later in the week. In its last meeting last month, the central bank decided to leave rates unchanged but hinted about another hike this year.
A string of economic data released last week showed that the central bank’s effort to tame higher prices is making progress. The Fed’s favorite inflation gauge, the core personal consumer expenditure (PCE) index, came in at 0.1% in August, lower than the expected 0.2% rise, recording the lowest monthly increase since November 2020.
Even so, the inflation rates remain higher than the Fed’s target inflation of 2%. Despite indications that one more rate hike is due this year, markets largely expect that the central bank is done raising rates. According to the CME FedWatch Tool, expectations for a 0.25% rate hike in November are at 25.7%. Odds for a December increase also fell to about 31%, down from 42% two weeks ago.
Bitcoin Price Technical Analysis
As predicted in my last article, the Bitcoin price climbed above the crucial support level of $ 26,900, prompting further gains. The daily chart shows that the Bitcoin price has been on an uptrend for the past few days, briefly breaching the bullish support level of $28,145. The digital asset has cruised above the 50-day and 200-day exponential moving averages but remains below the 100-day simple moving average.
As such, the Bitcoin price is likely to extend its gains into the ensuing sessions, as buyers target the next resistance level at $29,200. A break above this level could lead to subsequent gains to the coveted level of $30,000. Conversely, a breach below $27,500 will invalidate my bullish thesis.
BTC Price Chart
Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
-
Blogs6 years agoBitcoin Cash (BCH) and Ripple (XRP) Headed to Expansion with Revolut
-
Blogs6 years agoAnother Bank Joins Ripple! The first ever bank in Oman to be a part of RippleNet
-
Blogs6 years agoStandard Chartered Plans on Extending the Use of Ripple (XRP) Network
-
Blogs6 years agoElectroneum (ETN) New Mining App Set For Mass Adoption
-
Don't Miss6 years agoRipple’s five new partnerships are mouthwatering
-
Blogs6 years agoCryptocurrency is paving new avenues for content creators to explore
-
Blogs6 years agoEthereum Classic (ETC) Is Aiming To Align With Ethereum (ETH)
-
Blogs6 years agoLitecoin (LTC) Becomes Compatible with Blocknet while Getting Listed on Gemini Exchange
