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Bitcoin Price Could Resume Upside, Fed Hikes Again By 0.75 bps

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Aayush Jindal

Key Highlights

  • Bitcoin price climbed above $20,000 but struggled near $21,000.
  • It broke a key bearish trend line with resistance near $19,370 on the 4-hours chart.
  • The price could resume upside if it clears the $20,700 and $21,000 levels.
  • EUR/USD and GBP/USD slowly moved lower after facing hurdles.

Bitcoin Price Technical Analysis

Bitcoin price started a steady increase from the $18,500 zone against the US dollar. BTC/USD climbed above the $19,500 and $20,000 resistance levels to move into a positive zone.

Looking at the 4-hours chart, the pair settled above the $20,000 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

During the increase, the price broke a key bearish trend line with resistance near $19,370 on the same chart. Finally, it tested the $21,000 resistance zone. A high was formed near $21,009 before there was a downside correction.

On the downside, an initial support sits near the $20,150 level. The main breakdown support sits near the $19,800 zone. If there is a downside break, bitcoin might decline towards the $19,000 support in the coming days.

On the upside, the price is facing a significant resistance at $19,700. The main resistance sits near the $21,000 level. A close above the $21,000 level may perhaps start another steady increase in the coming days.

In the stated case, the price could rise towards the $22,000 level. Any more gains could set the pace for a move towards the $22,500 level.

Economic Releases

  • BoE Interest Rate Decision - Forecast 3.00%, versus 2.25% previous.
  • US Initial Jobless Claims - Forecast 220K, versus 217K previous.
  • US ISM Services PMI for Oct 2022 – Forecast 55.5, versus 56.7 previous.
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