Bitcoin (BTC) price seems to be reacting extremely well to the Fed’s decision. Indeed, the central bank of the United States has raised interest rates. This type of macroeconomic news affects traditional markets, but also Bitcoin. The last such announcement was announced on October 13. This is the CPI, which has induced a lot of volatility. Thus, everything suggests that the next Fed meeting could generate a bullish movement for Bitcoin. This event will be held on November 1 and 2.
Movement of Bitcoin (BTC) at a crucial level?
Bitcoin is currently hovering on the lower end of the range between $32,427 and $17,593. Its price is currently trying to find a level of support. This comes after the reaction on the 30-day exponential moving average (EMA) at $19,474.
The next critical support could absorb the selling pressure, which will trigger a reversal. In this case, the price movement will cause Bitcoin to face the 30-day EMA again. The area between $20,306 and $20,737 will also be a major hurdle.
A short-term view shows that the crypto king would have already started a reversal. After the 11% bullish move following the CPI, Bitcoin triggered a rally back towards $19,000. This zone also lines up with the 50% level of the Fibonacci retracement. But not that, this midpoint also coincides with the downside support trendline. This line connects the swing highs since May 31. Therefore, it is highly likely that Bitcoin will make a bullish move from this level.
However, the bulls will need to overcome the resistances mentioned above for the rally to continue.
Convergence between price and RSI
Next to that, the three-day chart of Bitcoin shows a convergence between the RSI and the price of Bitcoin. This pattern often precedes upside rallies.
Such a move could send Bitcoin to the crucial downward trendline. Buyers will have to put a lot of pressure to cross this line. Indeed, this line has been formed since May 28, and since then, it has connected several peaks. However, the king can easily exceed the 200-week simple moving average.
Bitcoin’s situation seems to be improving thanks to bullish movements on smaller time frames. However, liquidity and volatility seem to be lacking. If this continues, the Bears may take over, driving the price below the low at $17,593.
Recovery from a brief dip below this low could indicate a reversal. But if there is no recovery, Bitcoin may make a bearish move towards $17,000 or $15,550.
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