Bitcoin Price At Risk Of Further Squeeze, BTC Bulls Defend $20,000
01 Novembre 2022 - 11:47PM
NEWSBTC
The Bitcoin price is holding on at its current levels with bullish
momentum fading on lower timeframes. The crypto market’s recent
sideways price actions seem related to the upcoming macroeconomic
events and their potential influence across global markets.
Related Reading: Bitcoin Mining Giant Argo Blockchain Gets Negative
Cash Flows And Stock Price Dips At the time of writing, the Bitcoin
price trades at $20,500 with sideways movement in the last 24 hours
and a 6% profit over the previous week. Other cryptocurrencies in
the top 10 by market capitalization are displaying strength as BTC
moves sideways, with Dogecoin (DOGE) leading, followed by Ethereum
(ETH) and Solana (SOL). The Bitcoin Price In The Short Term,
Risk Of Spike In Volatility The Bitcoin price is under heavy
influence from macroeconomic forces. The U.S. Federal Reserve (Fed)
is trying to mitigate inflation by tightening its monetary policy,
hiking interest rates, and reducing global liquidity.
Consequently, Bitcoin and risk-on assets have trended to the
downside for 2022. In October, BTC showed a higher correlation with
traditional assets due to increased economic uncertainty. Per
a recent report by Arcane Research, this status quo is likely to
continue. The research firm believes that the Bitcoin price
mid-term will still suffer from a high correlation to macroeconomic
forces. Fed Chairman Jerome Powell is facing enormous
pressure to pivot its monetary policy from internal and external
agents in the United States. If Powell gives in, the Bitcoin price
will likely benefit and extend its bullish momentum. However,
Arcane Research believes it is more probable that Powell stays in
its current course, preparing markets for further interest rate
hikes. The financial institution and its leadership want to lower
inflation in the U.S. dollar regardless of the fallout in global
markets. During tomorrow’s Federal Open Market Committee
(FOMC) meeting, Powell might offer more clues. The market expects
further hikes, but any sign of dovishness could trigger another
upside move. Bitcoin Market Susceptible To Squeezes In that
sense, Arcane Research records two factors that might contribute to
a possible uptrend. The first is high leverage across the crypto
market. Short positions continue to pile up as the Bitcoin
price trends to the upside. These positions are fuel for BTC if the
market takes the long route. In addition, tomorrow’s FOMC
meeting will likely trigger volatility which might lead Bitcoin to
squeeze out these short positions and reclaim previously lost
territory. As Arcane Research noted, volatility during these events
is historically high. Related Reading: How MoneyGram Will Let Users
Trade Bitcoin And Crypto However, the same is true for the short
side of this trade. If the market overreacts to further tightening,
expecting the Fed to come out dovish, the cryptocurrency could
suffer and revisit the bottom of its range at $18,600. Arcane
Research noted: Prepare for shaky markets in early November,
as the event calendar is enormously busy in the first half of the
month. Tomorrow comes the first.
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