- Bitcoin hovers above the $20,000 level following the recent Fed-hike announcement.
- On-chain metrics show bears are already underwater and may still need to capitulate.
- Invalidation of the bullish thesis is a breach below $19,610.
Bitcoin price is at a make-or-break decision. Currently, the peer-to-peer digital currency is hovering above a key level. If market conditions persist, bulls may be able to pull off another rally going into the new year.
Bitcoin price shows bears underwater
Bitcoin is finding support above the previous triangle apex near the $20,300 price level. On November 2, the bulls lost support from the 8-day exponential moving average following the Fed-hike announcement. Although nothing is certain, BTC’s ability to sustain above the previous congestion zone is an optimistic signal that BTC may be able to dodge inflation’s depreciating effects on the economy.
Bitcoin price currently auctions at $20,305. The Relative Strength Index (RSI) shows a bearish divergence between the last two highs, which likely enticed bears to flex their power following the Fed monetary policy announcement. Still, it is very rare for the RSI to top on the first bearish divergence signal. If the bulls can stabilize in this zone, a challenge of the last-minute October highs at $21,000 will stand a fair chance of occurring.
BTC/USDT 1-Day Chart
Coinglass’ Long vs. Short Ratio compounds the idea that the bears may soon face a challenge, as the last week of October shows most retail traders positioned short in the market. Nearly six of every ten traders were positioned short on October 24, when BTC traded between 19,602 and 19,157, and October 31, when BTC traded between $20,845 and $20,237. Market makers may use this evidence to challenge bears underwater by moving the market higher to forge a liquidation event. Short-term targets lie at $20,500, while a $24,300 level may be a Santa Rally target zone.
Coinglass’s Long vs. Short Ratio
Invalidation of the bullish thesis is possible if the bears breach the $19,610 level. The breach could result in a further decline toward liquidity levels near $18,700. Such a move would create a 7% decrease from the current Bitcoin price.
In the following video, our analysts deep dive into the price action of Bitcoin, analyzing key levels of interest in the market. -FXStreet Team
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.