The overall cryptocurrency market has started the first week of November on a positive note. The market capitalization of all coins tracked by CoinMarketCap surged to more than $2.7 trillion. BTC outperformed the prior 7days, up 7%, and closed higher at $63,266 after reaching highs of $64,300 on Tuesday. After periods of high volatility, trading activity on the BTC/USD pair, especially in the US market on Wednesday, is more subdued below $63,568 intraday high. As apparent on the daily chart, BTC upside run consolidates a rising Bitcoin demand beyond the $60,000 level, trading substantially since the week’s start. At the time of analysis, BTC/USD is hunting for support at $61,500, and if it holds, it may likely keep rising as bulls target the next level at $65,000 and above. Continued high inflation remains a concern as markets do not seem to have fully priced in tighter monetary policy yet. The expectation of prolonged inflation supports BTC, which will continue to gain as investors price in a FED interest rate decision. The positive momentum continues ahead of the Fed Meeting and could see the beginning of the tapering process.
Key Levels
Resistance Levels: $70,000, $67,000, $65,000
Support Levels: $60,000, $57,000, $54,000
BTC/USD Daily ChartAs traders expect a FED interest rate decision, the robust BTC/USD bounce on Monday and Tuesday dissipates. BTC fell to $61,610, a lower level than the week’s high of $64,300. On the daily chart, the pair managed to stay past the $61,500 near-term support. It’s also trading above the moving average (MA’s 50 and 200). As a result, the pair is likely to continue to consolidate in the nearest future.
Also, it is unlikely that some upside potential could prevail in the market in the short term due to the resistance area formed by the fresh all-time high at $67,000. Thus, the pair could decline in the short run. In the meantime, note that the lead crypto could gain support from the weekly support located at $59,500. If the given support zone holds, BTC could continue to consolidate. Otherwise, the pair could decline to $57,000.
BTC/USD 4-Hour ChartTrading continues to be subdued in the American session as markets are in anticipation. BTC/USD selloff slowed somewhat and is trading mildly higher past the $60,000 zone. Technically, the BTC price is still holding above the $61,500 handle and 4-hour MA 50. A breakthrough may dampen the upside run. Price actions from $66,999 are a retracement. In any case, the outlook will stay bullish as long as $60,000 resistance turned support holds.
If the given moving averages hold during the session, some upside potential could likely prevail. Note that the nearest resistance level—the weekly high, is located at $64,300. However, if the BTC/USD price fails to exceed the psychological level at $63,000, the price for the lead crypto could likely continue to trade sideways in the short run. Otherwise, the pair could surge to $65,000.
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