Bitcoin price has seen a volatile week, juggling between the red and green trading zone while investors tried picking cues to access the biggest cryptocurrency’s future moves.
Bitcoin at present has failed to break through a crucial level this week due to a lack of significant positive trading signals.
As demand for riskier assets remained low due to uncertainties surrounding a close US election and rising interest rates, Bitcoin’s price toppled, being in tandem with the larger market.
At the press time, the OG cryptocurrency was trading at $67,066.94, down 0.80% as compared to the same time last day. It is also down 1.8% this week, according to data from CoinMarketCap.
In an exclusive interview with UnoCrypto, Mehow Popieszalski, CEO of MatterFi says “Technically, the market is signaling a reversal which could eventually find support at the $64’287 level. This technical weakness is holding buying interest in check. At the moment, the negative delta is approximately -0.63%.”
Crypto Markets Eye November Fed Rate Decision
The US Fed’s interest rate decision has had a huge impact on the way Bitcoin investors evaluate their profile. Usually, a lower interest rate makes government assets like bonds less likable for investors due to lower yields. This makes riskier assets like Bitcoin more valuable, thereby increasing trading activity.
Additionally, resilient economies have proven to attract more Bitcoin investments, given that both institutional and retail investors have more money to invest.
Mehow Popieszalski believes that the BTC market rallying is contingent upon a number of factors at present. Rate cuts could definitely be a strong catalyst. It’s clear that the Fed will need to take some action regardless of who wins the election.
“Modelling and current sentiment is estimating a cut of at least 25bps. A cut of 50bps would be optimal for this hypothesis. A substantial cut could lift the market another 10 – 15% above the highs printed in March”, he adds.
Will Bitcoin Regain Its Momentum In November?
Bitcoin investors are trying to be cautious at present, given a lack of positive cues in the market. Mehow Popieszalski says “At the moment, the market sentiment is mixed. The short-term market action is slightly overbought, however, the longer-term fundamentals are signaling a rally.”
He added “This is likely the calm before the storm. The market may remain flat to neutral until some major headline sparks major buying or selling activity”
At present, the Fear & Greed Index for Bitcoin is displaying a bullish emotion, according to market technical indicators. Over the past 30 days, Bitcoin has had 15 out of 30 (50%) green days with 4.00% price volatility.
Market participants also predict that Bitcoin’s 200-day SMA will increase during the course of the upcoming month, reaching $66,084 by November 25. During this time, Bitcoin’s short-term 50-Day SMA is predicted to reach $75,340.
Popular indicators that show if a cryptocurrency is overbought (above 70) or oversold (below 30) include the Relative Strength Index (RSI) momentum oscillator. The RSI score for BTC is at 63.17, indicating that the Bitcoin market is in a neutral state.