Following the Federal Open Market Committee’s (FOMC) recent assertive comments, the price of Bitcoin experienced a nearly 3% dip.
The central narrative revolved around the minutes from the Federal Reserve, in which policymakers emphasized the need for restrictive policy measures to persist for an extended period.
Their consensus was based on the importance of treading cautiously, even as they acknowledged the delicate balance between the risks of excessive tightening and the necessity of steering inflation toward a 2% trajectory.
The latest FOMC minutes show the Fed sticking with their data-dependent approach. So, tomorrow’s CPI print will be a key event.
US CPI Takes Center Stage in Today’s Trading Activities The US’s annual headline inflation for September is projected to slightly retract to 3.6%, a marginal decrease from August’s 3.7%.
Concurrently, the core annual inflation is poised to register a minor dip, moving from the previous 4.3% to an anticipated 4.1%.
Amidst this landscape, the critical concern dominating financial discussions is whether inflation might stagnate on its route to the 2% target, potentially proving to be more resilient than initially estimated.
While this intricate situation may not influence markets immediately, its eventual unfolding promises to reshape how data interpretations are approached.
In the current scenario, the available metrics might not offer substantial insights beyond indicating a continued moderation in inflationary pressures.
However, keen market observers are setting their sights on the bond market’s reactions, especially given yesterday’s contradictory trends.
The evolving dynamics promise to offer intriguing insights into Bitcoin’s trajectory in the days to come.
Bitcoin Price As the crypto world’s poster child, Bitcoin currently trades at $26,800, and there seems to be a noticeable movement in the market. Over the past 24 hours, the currency has registered a 1% decline, according to the data obtained.
Generating a whopping 24-hour trading volume of $12.71 billion, Bitcoin retains its dominance, ranking #1 on CoinMarketCap. Its current market cap stands at approximately $523.28 billion.
In terms of supply, the crypto has a circulating volume of 19,511,187 BTC, approaching its maximum limit set at 21,000,000 BTC.
Bitcoin Price Prediction The 4-hour chart offers a clearer image of Bitcoin’s trajectory. A pivotal point at $26,486 provides a foundation for the coin’s price movement.
If Bitcoin were to rally, it would face immediate resistance at $28,020. Subsequent barriers stand at $29,032 and further at a significant $30,565.
Conversely, should it experience a decline, immediate support forms at $25,474, with further cushions at $23,941 and $22,929.
Delving into technical indicators, the Relative Strength Index (RSI) sits at 46. While it doesn’t suggest an immediate overbought or oversold condition, an RSI below 50 leans towards a bearish sentiment.
Moreover, the 50-day Exponential Moving Average (EMA) stands at $27,253, slightly above the current price. This factor points towards a short-term bearish trend.
From the perspective of chart patterns, Bitcoin recently broke below an upward channel at $27,350. The bearish crossover of the 50 EMA further amplifies the selling trend in the market.
In conclusion, the current trend for Bitcoin is bearish, especially if it remains below the $27,253 mark. The market dynamics and technical analysis suggest traders tread cautiously and keep a vigilant eye for any further breakout or movement in either direction
