The price of Bitcoin drops below $27,000 as FOMC minutes indicate that rates may stay low for some time.
- According to the FOMC minutes, every committee member agreed that the Federal Reserve should proceed cautiously.
- The minutes also mentioned that the officials believed there were now more two-sided dangers to reaching objectives.
- As of this writing, the price of Bitcoin had dropped below $27,000, and other cryptocurrency markets were showing conflicting signs.
According to analysts, the price of bitcoin (BTC) may soon see a substantial squeeze in either direction or both. BTC open interest has recently surpassed a crucial level and hit a new multi-month high.
At its September meeting, the Federal Open Market Committee (FOMC) opted to keep the target interest rate between 5.25% to 5.50%; nevertheless, the meeting minutes indicate that a rate hike may occur before the year is over.
The FOMC minutes indicate that there is a possibility that the Committee’s November 1 meeting may result in an increase in rates. The minutes did, however, also state that everyone present felt that interest rates need to remain low for a while.
The FOMC minutes caused the price of Bitcoin to initially react negatively, which exacerbated the day’s initial fall.
BITCOIN TECHNICAL ANALYSIS DAILY CHART:
Technical Overview
Bitcoin is currently trading within a down channel.
Bitcoin is positioned below the 5&20 Moving Averages (SMA).
The Relative Strength Index (RSI) is in the buying zone, while the Stochastic oscillator suggests a negative trend.
Immediate Resistance level: 27506.10
Immediate support level: 26489.26
HOW TO TRADE BITCOIN
After gaining, the price of bitcoin fell and began to trade in a downward channel, sticking to a lower low structure. Bitcoin has currently tried to rise but has been rebuffed. It is currently trading in a support zone; an additional decline is probable if this zone breaks down.
TRADE SUGGESTION- STOP SELL – 25981.11, TAKE PROFIT AT- 24841.83, SL AT- 26849.15.