Bitcoin price stays close to resistance at $38,000 ahead of the release of the Fed November 1 minutes. Accumulation of BTC is set to continue before the the pre-halving rally in 2024.
Published 9 hours ago
The market has calmed down following the widespread bullish comeback on Monday, with Bitcoin price extending the bullish leg a step closer to the critical resistance at $38,000 but stalling around $37,625.
Altcoins like Ethereum moved in tandem with BTC price resulting in action above the vital $2,000 support. Binance Coin is one of the tokens in the green on Tuesday, up 4.5% to $258.
However, there has been a general correction among altcoins in the last 24 hours led by Solana’s 6.3% dip to $56. The rest of the digital assets in the top ten are in the red apart from the two stablecoins; USDT and USDC.
Meanwhile, Bitcoin price remains relatively unchanged over the same period while bulls launch frequent attacks on the immediate $38,000 resistance.
According to trader and analyst @CryptoFaibik who posts on Twitter (now X), Bitcoin could break to $41,000 “if BTC bulls successfully clear the $38k resistance.”
If $BTC bulls Successfully Clear the 38k Resistance and Next Stop could be 41k.#Crypto #Bitcoin #BTC #BTCUSDT pic.twitter.com/X26xCLX9oG
— Captain Faibik (@CryptoFaibik) November 20, 2023
Bitcoin Price Prediction: Bulls Struggle To Clear $38k Hurdle
Bitcoin is trading between two important levels; the seller congestion at $38,000 and support at $36,000. Trading on either side of this range could either be bullish for BTC or bearish.
Based on the Moving Average Convergence Divergence (MACD) indicator’s technical outlook, gains above $38,000 are likely rather than a pullback to $36,000 in the short term.
Realize that the momentum indicator dons a buy signal, and on top of this, holds above the neutral zone. If the blue MACD line keeps moving in the upward direction while holding above the red signal line, the path with the least resistance could stick to the upside.
The ongoing bullish cross on the weekly timeframe further raises the stakes in favor of the bulls. As observed the 50-week Exponential Moving Average (EMA) (red) has flipped above the 200-week EMA (purple), forming a golden cross pattern.
Traders use this pattern to confirm the generally bullish outlook of the market. Its presence on a higher timeframe like the weekly chart reinforces the bullish thesis in the long term.
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It is expected that Bitcoin price would not react to the release of the Federal Reserve’s release of the November 1 FOMC meeting. A trend has been forming where BTC does not react to the actions of the Fed, especially with the committee members pausing interest rate hikes for several months now.
Although the Fed has insisted on a single rate hike before the end of the year, weak economic data released after the meeting has significantly increased expectations for no more rate hikes.
According to analysts at ING the release of the minutes later today “is likely to be less market-moving than usual, given the post-meeting softness in data.”
“We have already heard from several Fed officials who have welcomed the direction of the numbers but commented that they want to see more of the same to be sure that inflation is on the path to 2%,” the analysts added in a November 17 note.
Bitcoin Halving Coming In 5 Months
On the other hand, accumulation is bound to increase with halving only five months away. Investors could spend the following weeks buying the dips to capitalize on the pre-halving rally.
According to crypto analyst and investor @Rekt Capital, “historically, any deeper retraces that occur during this period tend to generate fantastic Return On Investment for investors in the several months after the halving.”
5 Phases of The Bitcoin Halving
1. Pre-Halving period
Approximately 5 months remain until the Bitcoin Halving in April 2024
Historically, any deeper retraces that occur during this period tend to generate fantastic Return On Investment for investors in the several months… pic.twitter.com/YuhxffF0Ei
— Rekt Capital (@rektcapital) November 20, 2023
A pre-halving rally would ideally occur 60 days before the halving event. Investors buy BTC in droves due to the expectations of how halving could push prices higher.
Bitcoin price tends to go through several rallies before and after the halving, with a parabolic uptrend following several months after the actual event.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/bitcoin-price-prediction-bulls-challenge-38k-resistance-next-btc-stop-41k/