Bitcoin Hits $20K Post-Fed As Rising Dollar Prompts BTC Price Warning
Bitcoin (BTC) remained lower on November 3rd as the aftermath of the Federal Reserve rate hike subsided.
Trading range forms with $20,000 in the center
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hovering just above $20,000 on the day.
The pair had seen flash volatility as the Fed hiked 0.75%, fakeout moves up and down that triggered liquidations both long and short.
Cross-crypto liquidations in the 24 hours up to the time of writing totaled $165 million, data from Coinglass confirmed.
Bitcoin eventually ended slightly lower than pre-Fed levels, a range that continued to hold for the day as analysts awaited new signals.
For popular Twitter trader Crypto Tony, there was little need to adjust an existing forecast that saw the downside resuming in the near term.
“My main bias has not changed as I expect more consolidation and one more drop to produce a spring-like movement to start the bull run,” he told followers on the day.
Data from monitoring resource material indicators highlighted potential support and resistance zones using trades from the Binance order book.
$19,000 and $21,000 were the focus of analyst Maartunn, a contributor to the analysis platform CryptoQuant in the chain.
“Two order clusters are added at $19,000 and $21,000. These are positioned around the FOMC,” he noted.
“Is this going to be the new trading area?”
DXY suggests bad news for risk assets
Fellow trader John Wick, meanwhile, expressed caution over rising US dollar strength following the rate hike.
Related: Bitcoin Seller Exhaustion Hits 4-Year Low in ‘Typical’ Bear Market Move
Uploading charts of the US Dollar Index (DXY), he warned that the impact of the USD gaining ground would be felt across risk assets.
“First chart is the wrecking ball-gun dollar. We bounce off the recent lows, head for the top of the trend channel, just like I said it would after we see another hike,” wrote.
“This will push all asset prices including BTC. Note how the RSI remains bullish above the midline.”
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