Bitcoin has been seeing relatively quiet price action lately, with the cryptocurrency primarily trading past the $11,000 region as its bulls and bears reach an impasse. Bitcoin volatility gained momentum in mid-August when its price marked a new yearly high above $12k. Since then the first digital currency entered a correction cycle from its $12,486 yearly high. Despite pullbacks, BTC/USD endures pressure under $11,500 on extreme optimism. BTC buyers grapple with the price before making another attempt at crossing above the psychological $12,000. The Bitcoin (BTC) market cap is currently $211 billion, with $22.72 billion traded in the past 24 hours. Meanwhile, BTC/USD is changing hands at $11,500, up approx. 2% on a day-to-day basis. On Thursday, the market expects Mr. Powell to clarify the Fed’s stance on whether it is willing to push its inflation target beyond two percent. An indication of inflation pushing above 2 percent in the coming years would be Bitcoin’s biggest booster as traders anticipate weaker US dollar. The reverse will be the case if there is no forward guidance from Mr. Powell.
*BTC buyers grapple with the price before making another attempt at crossing above the psychological $12,000
*Despite pullbacks BTC/USD endures pressure under $11,500 on extreme optimism
*On Thursday, the market expects Mr. Powell to clarify the Fed’s stance on whether or not it is willing to push its inflation target beyond two percent
Resistance Levels: $13,000, $12,500, $12,000
Support Levels: $11,000, $10,500, $10,000
BTC/USD Daily Chart: Bullish
BTC/USD Daily Chart
BTC/USD is currently trading at the price level of $11,500 trying to hold above the congestion support before the MA 50. Above the current price, the first resistance level is at $12,000, then the second at $12,500. Below the current price, the first support level is at $11,000, then the second at $10,500. The RSI on the daily chart expands the bearish profile, both in terms of slope and in terms of the separation between the MA 50 and MA 200.
This implies the final phase of the $12,000 trip might be an enormous struggle. Nevertheless, if Bitcoin pulls the price near MA 50 towards congestion support, more buyers are anticipated to enter the market to leverage on the $12,000 spike projected. Consider that the above price forecast is prone to drop to $11,000 while launching yet another attempt to cross over the psychological $12,000.
BTC/USD 4-Hour Chart: Ranging
BTC/USD 4-Hour Chart
Bitcoin exchanges at a pivotal moment over the short and medium-term, bearing a reversal toward the support region of $11,000 observed in previous sessions. The technical analysis reveals that if the $11,000 area continues to hold steady, the BTC/USD pair may advance beyond the $11,500 mark. To the downside, a fall beneath a support zone of $11,000 may trigger a major sell-off to level $10,500.
Bitcoin’s expected overwhelming reaction to Powell’s FED speech has left its market with two potential scenarios. The BTC/USD pair is only bullish when exchanging beyond the level of $11,000, the main resistance is seen at levels between $11,500 and $12,000. If the BTC/USD pair exchanges beneath the level of $11,000, then sellers may test the levels of $10,500 and $10,000.
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