Bulls have a lot of work to do, Bitcoin analysts say as BTC price consolidation sets in.
Bitcoin
BTC
dial down
$21,187
Consolidated profit on October 27, as the highest levels in six weeks gave way to secondary actions.
BTC/USD 1 hour candle (bit stamp). Source: TradingView
Bitcoin impresses with stability in GDP pressure
Data from Cointelegraph Markets Pro and TradingView shows BTC/USD hovering around $20,500 on Bitstamp after hitting local highs of $21,012 the day before.
The largest cryptocurrency is buoyant in line with US stocks at the open on Wall Street, with the S&P 500 flat and the Nasdaq Composite Index up 1% at time of writing.
Meanwhile, the US Dollar Index (DXY) has started to recoup the day’s losses, providing a headwind for risky assets that have been absent for much of the week. DXY had seen its lowest levels since mid-September.
US Dollar Index (DXY) Japanese 1 hour candlestick. Source: TradingView
Before an interest rate decision by the Federal Reserve, gross domestic product (GDP) data showed a decline in the US economy in the third quarter.
“This [GDP] number is weaker in terms of the signal it sends about the strength of the economy than the last one, even though the headline was positive,” said Eric Winograd, director of economics for developed markets. Research at AllianceBernstein, however. the Financial Times.
In Europe, the European Central Bank (ECB) raised key rates by 0.75%, as expected.
“Today is a great day when the ECB presents its policy and US GDP figures,” summed up Michael van de Poppe, founder and CEO of trading company Eight.
“Honestly, Bitcoin remains quiet at these levels, I would have expected a more significant correction since the last push.”
The latest data from CME Group’s FedWatch tool puts the odds of the Fed copying the 0.75% hike at 90.8% on the day.
Fed Interest Rate Probabilities Table. Source: CME Group
$14,000 return still following the traders chart
Analyzing the weekly chart of BTC/USD, popular trader Rekt Capital marks the area immediately below $22,000 as an important area to call for continued bullishness.
Related: A record 55,000 Bitcoin, or more than $1.1 billion, has just been withdrawn from Binance
“BTC is slowly approaching the red resistance area,” he wrote in an update on Oct. 26.
BTC/USD annotated chart. Source: Rekt Capital/Twitter
Meanwhile, Crypto analyst Il Capo said that $21,500 must form the basis for consolidation if the bulls want to get to $23,000.
The “main scenario” for him remained a drop to new macro lows for BTC/USD, potentially $14,000.
BTC/USD annotated chart. Source: Il Capo de Crypto/Twitter
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