Bitcoin bulls maintain advantage over bears as BTC faces sideways price resistance
After signaling signs of breaking past the $21,000 level, Bitcoin (BTC) corrected further during early trading hours on October 31, but the first cryptocurrency has continued to hold above critical levels. In particular, Bitcoin and the overall crypto market experienced a minor uptick in the wake of a week full of macroeconomic activity around corporate earnings.
After the minor fall, News from Kitco analyst Jim Wyckoff on October 31 suggested that Bitcoin bulls are still in control, citing a ‘general, near-term technical advantage’ over bears.
Accordingly, 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 new price rally is in place on the daily bar chart. Bulls still have the overall near-term technical advantage suggesting 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 volatile, with the summary mainly lining up between neutral and buy. In particular, ‘neutral’ stands at nine, with ‘buy’ represented by 10. For moving averages, ‘buy’ ranks at the 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 line with stocks against 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 monetary policy update from the Federal Reserve. Besides a possible update on interest rate hikes, investors will be keen to find out whether the Fed will cool down its tightening measures amid a prolonged recession.
Furthermore, investors have been looking for possible indicators of signs of improvement with the struggling economy. For example, the upcoming US jobs report is expected to provide a possible direction for the overall market. Additionally, following the recent consolidation in the Bitcoin price, analysts have suggested that a possible price bottom may be in play.
Meanwhile, at press time, Bitcoin was trading at $20,700, up less than 1% over the past 24 hours.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
