Bitcoin ( BitcoinTC), which saw sideways action at its highest level in six weeks, consolidated gains Oct. 27,
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Bitcoin’s stability in GDP print impresses
Data from Cointelegraph Markets Pro, TradingView indicated that BTC/USD was at $20,500 on Bitstamp following reaching local highs $21,012 the previous day.
The largest cryptocurrency trod water in line at Wall Street open with United States Equities, with the S&P 500 flattish and the Nasdaq composite Index down around 1 percent at the time.
The U.S. dollar Index (DXY) began to recover losses from the day. This provided a boost to risk assets that were absent for most of the week. The DXY was at its lowest level since mid-September.
U.S. dollar index (DXY) 1-hour candle chart. Source: TradingView
Gross domestic product (GDP), data from the U.S., showed a rebound in Q3 ahead of the Federal Reserve’s decision on interest rates.
“This [GDP] figure is weaker in terms the signal it sends regarding the forward strength of our economy than the previous one, even though the headline was positively,” Eric Winograd (director of developed market economic research at AllianceBernstein), told The Financial Times.
As expected, the European Central Bank (ECB), raised key rates in Europe by 0.75%.
“Big day today as the ECB arrives with their policy numbers and GDP numbers from U.S.A,” Michael van de Poppe founder and CEO of trading company Eight, summarized.
“Honestly, Bitcoin is calm at these levels. I would have expected a greater correction since the last push.”
CME Group’s FedWatch Tool has updated to show that the Fed is likely to follow the 0.75% increase at 90.8% per day.
Fed target rate probabilities chart. Source: CME Group
Trader’s chart still haunted by $14,000 return
Popular trader Rekt Capital identified the area immediately below $22,000 on the weekly BTC/USD chart as an important zone to reclaim in order to maintain bullishness.
Similar: Just withdrawn from Binance a record 55,000 Bitcoins, which is over $1.1 Billion.
He stated that BTC is gradually approaching the red resistance zone in an update on October 26.
BTC/USD annotated chart. Source: Rekt Capital/Twitter
Il Capo, another analyst at Crypto, stated that $21,500 was required to consolidate bulls’ hopes of seeing $23,000 come to fruition.
His “main scenario” was a reversal of the new macro lows in BTC/USD that could potentially reach $14,000.
BTC/USD annotated chart. Source: Il Capo of Crypto/Twitter
These views and opinions are the author’s and do not necessarily reflect those of Cointelegraph.com. You should do your research before making any investment or trading decision.
