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Bitcoin Could be Coiling Up for a Move Past $11,000 Due to These Events

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  • Bitcoin’s price has been seeing an incredibly tight bout of consolidation throughout the past 24-hours, forming a $50 trading range as it stays within the mid-$10,500 region
  • This has created an air of uncertainty regarding where it may trend next, as it could easily see a swift move in either direction
  • That being said, the cryptocurrency’s ability to find stability in the face of a barrage of multiple bearish news developments is positive
  • One trader is now noting that he believes that Bitcoin’s current price action is its way of coiling up before it makes a big move past $11,000

Bitcoin and the entire crypto market have been caught within a bout of sideways trading throughout the past several days and weeks, with both sides being unable to garner any clear momentum.

This has created one of the tightest consolidation channels BTC has seen in months, which could indicate that the next movement will be massive.

That being said, one trader is noting that a continued bout of choppy trading could push funding even further into the negative zone, which will help provide fuel for bulls to spark a massive move higher.

Bitcoin Consolidates Around $10,500 as Bulls and Bears Reach an Impasse 

At the time of writing, Bitcoin is trading down marginally at its current price of $10,540. This is around where it has been trading throughout the past couple of days.

Ever since BTC dipped to lows of $10,400 earlier this week following news regarding President Trump contracting the deadly virus currently circulating throughout the globe, its consolidation channel has been narrowing.

Throughout the past 24 hours, Bitcoin has been trading between $10,500 and $10,580, with this range narrowing even further throughout the past few hours.

Analyst: These Events Could Be Pushing BTC’s Funding Lower 

While speaking about where he expects Bitcoin to trend in the days and weeks ahead, one analyst noted that its negative funding rates are a positive sign.

He also explained that fear resulting from a combination of BitMEX’s legal issues, uncertainty about the President’s health, and low investor sentiment could help push funding rates even lower.

“BitMEX legal issues – Trump got COVID19 – funding already negative. Wouldn’t it be a shame if BTC kept chopping below the CME level (blue) and made funding go even more negative and then on Monday we pump straight to 11k rekting everyone that go bearish during the weekend.”

Image Courtesy of Byzantine General. Chart via TradingView.

If this push higher does take place as he suspects, a high quantity of open short positions will act as fuel for a move significantly higher.

Featured image from Unsplash.
Charts from TradingView.





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Bitcoin price falls after Fed shifts interest rate hikes forward amid inflation fears

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Bitcoin dropped closer to a key support level and the Dow and the S&P 500 pulled back after the Federal Reserve moved forward its plan for 2 interest rate hikes in 2023.

Bitcoin (BTC) price extended its losses shortly after Federal Reserve Chair Jerome Powell announced that the Fed would move forward its timeline and schedule two interest rate hikes in 2023.

Bitcoin price was already seeing weakness in the early trading hours after losing the $40,000 level to mark an intra-day low at $38,300. The Dow and S&P 500 also pulled back 0.77% and 0.54% respectively.

Daily cryptocurrency market performance. Source: Coin360

The decision comes as economists worry about rising inflation in the United States and Powell said that the Fed had raised its inflation expectation from 2.4% to 3.4%. While Powell described the current inflation spike as “transitory”, consumer prices are at a 13 year high and analysts worry that rising inflation will impact the post-covid economic recovery.

Powell did not directly address whether, or when the Fed would begin tapering its $120 billion monthly bond purchases but the decision to begin raising rates in 2023 suggests that the program will see cuts way in advance of 2023 in order to be carried out in a moderate fashion.

Can Bitcoin price maintain its current range?

BTC/USDT daily chart. Source: TradingView

On June 15 Bitcoin price successfully completed its bullish inverse head and shoulders pattern (4-hour chart), but fell short of the $45,500 target after hitting resistance at $41,350.

While the price has slipped below $40,000 and failed to flip the level to support, analysts are viewing the current price action as nothing more than range-bound trading and at the time of writing, $38,300 looks like a lower support retest.

With less than 3 hours before the daily close, traders will likely look for BTC to hold above the 20-day moving average near the $37,000 level which is expected to function as support.

One thing to note is the steady inflow of BTC to major exchanges and an increase in miner outflows over the past few days as data from CryptoQuant suggests that Bitcoin inflows lead to bearish outcomes.

The 50- and 200-day moving averages are also enroute to converge, possibly forming a bearish ‘death cross’, but both are lagging indicators, meaning they are not entirely reflective of spot price action. Nevertheless, both moving averages could present considerable resistance for bulls.

A dip below the $37,000 to $36,000 range where many traders on crypto-Twitter have announced they have bids would likely take BTC price to the lower end of its current range in the $35,000 to $31,000 zone.