After signaling signs of breaking past the $21,000 level, Bitcoin (BTC) slightly corrected further during the early trading hours of October 31, but the maiden cryptocurrency has continued to hold above critical levels. Notably, Bitcoin and the general crypto market experienced a minor rally in the wake of a week jammed with macroeconomic activities around corporate earnings.
Following the minor drop, Kitco News analyst Jim Wyckoff on October 31 suggested that Bitcoin bulls are still in control, citing an ‘overall near-term technical advantage’ over bears.
Consequently, based on the recent price movement, Wyckoff pointed out that investors should expect Bitcoin to trade sideways as a tug-of-war ensues between bulls and bears.
“A fledgling price uptrend is in place on the daily bar chart. Bulls still have the overall near-term technical advantage to suggest the path of least resistance for prices will be sideways to higher in the near term,” he said.
Bitcoin technical analysis
Following the correction, Bitcoin technicals appear shaky, with the summary aligning predominantly between neutral and buy. Notably, ‘neutral’ stands at nine, with ‘buy’ represented by 10. For moving averages, ‘buy’ ranks top at nine, with oscillators mainly ‘neutral’ at eight.
Overall, Bitcoin’s current price still faces the possibility of high volatility despite consistently trading above $20,000 for the first time since early September. It is worth noting that Bitcoin has traded in tandem with stocks in the backdrop of prevailing macroeconomic factors led by inflation and interest rate hikes.
Fed policy impact on Bitcoin
In this line, investor focus is on the upcoming Federal Reserve monetary policy update. Besides a possible update on interest rate hikes, investors will be keen to learn whether the Fed will be cooling down on its tightening measures amid a lingering recession.
Furthermore, investors have been looking for possible indicators of recovery signs with the economy struggling. For instance, the upcoming U.S. job report is expected to offer a possible direction for the general market. Additionally, following the recent consolidation in Bitcoin price, analysts have suggested that a possible price bottom might be in play.
In the meantime, by press time, Bitcoin was trading at $20,700, gaining by less than 1% in the last 24 hours.
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