Bitcoin Cools Its Rally – Here Are The BTC Price Levels You May See Next
Bitcoin (BTC) consolidated gains on October 27 as six-week highs gave way to sideways action.
Bitcoin impresses with stability on GDP print
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD circulating $20,500 on Bitstamp after hitting local highs of $21,012 the previous day.
The biggest cryptocurrency treaded water in line with US stocks at the Wall Street open, with the S&P 500 flat and the Nasdaq Composite Index down around 1% at the time of writing.
The US dollar index ( DXY ), meanwhile, began to claw back losses on the day, providing headwinds to risk assets absent much of the week. The DXY had seen its lowest levels since mid-September.
Ahead of an interest rate decision by the Federal Reserve, data for gross domestic product (GDP) showed an upturn for the US economy in the 3rd quarter.
“This [GDP] The number is weaker in terms of the signal it sends about the future strength of the economy than it was previously, even though the headline was positive, says Eric Winograd, director of advanced market economic research at AllianceBernstein, to the Financial Times.
In Europe, the European Central Bank (ECB) raised key interest rates by 0.75%, as expected.
“Big day today as the ECB comes in with their policy and GDP numbers from the US,” Michaël van de Poppe, founder and CEO of trading firm Eight, in summary.
“Honestly, Bitcoin remains calm at these levels, would have expected a more significant correction since the last push.”
The latest data from CME Group’s FedWatch Tool put the odds of the Fed copying the 0.75% hike at 90.8% on the day.
$14,000 returns still haunt the trader’s chart
Analyzing the weekly BTC/USD chart, popular trader Rekt Capital highlighted the zone just below $22,000 as an important one to regain for bullishness to continue.
Related: Record 55,000 Bitcoin, or Over $1.1 Billion, Just Withdrawn From Binance
“BTC is slowly approaching the red resistance area,” he wrote in an update on October 26.
Co-analyst Il Capo of Crypto, meanwhile, said $21,500 would be needed to form the basis for consolidation if bulls want to see $23,000 materialize.
His “main scenario” remained a reversal to new macro lows for BTC/USD, potentially reaching $14,000.
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