Bitcoin price prediction remains bearish under the $21,000 level and bullish above the $20,300 mark. By falling below $21,000, a key support level, the price of Bitcoin has taken a severe hit.
The global crypto market valuation dropped more than 1% to $1.04 trillion on November 6, and major cryptocurrencies were trading in a mixed bag early on November 7.
The total value of the cryptocurrency market dropped by less than 0.50% over the past 24 hours, reaching $69.99 billion.
What’s driving a downtrend in BTC?
FOMC and Non-farm Payroll Signals Hawkish Policy
During the last week, the Federal Reserve raised interest rates yet again, upsetting the previously stable crypto market. The Federal Open Market Committee (FOMC) of the United States announced its sixth rate hike of the year during its meeting.
The Federal Reserve raised interest rates by 75 basis points more. The Fed’s current interest rates range from 3.75% to 4%.
#Breaking | The US Federal Reserve hikes rates by 75 bps.
— CNBC-TV18 (@CNBCTV18Live) November 2, 2022
Following the announcement of the rate hike, Powell stated that the inflation rate was still far above the Fed’s target of 2% and that the institution was committed to bringing it back down to these levels. He stated that more interest rate increases are expected. “We will remain on course until our mission is completed,” Powell said.
However, the value of BTC has always been adversely affected by interest rate increases by the Fed. It is because the increase usually discourages investors from holding BTC.
US #NFP surged by 261k in Oct, better than exp as hiring remains strong#Unemployment rate ticked up to 3.7% from 3.5%. Avg hourly earnings grew 4.7% YoY, 0.4% MoM, indicating that wage growth still likely to pressure #inflation.#BTC #USD#XAUUSD#StockMarket pic.twitter.com/oEh93LlXPN
— Captain Amir (@Captain_Amir_Fx) November 4, 2022
Besides, the mixed labor market figures from the US also played a major role in Bitcoin’s bearish performance. As a result, BTC/USD fell steadily as the effects of the Federal Reserve’s interest rate hike sentiments.
Fidelity Launches Bitcoin Trading App Early Access
Financial services provider Fidelity Investments has released details on the launch of its new bitcoin trading platform. Trading cryptocurrencies is now commission-free on the platform catering to retail investors. Fidelity’s commitment to cryptocurrency is exposed by the rollout. Early access waitlists were made accessible to customers.
CNB: Fidelity Investments is set to launch a retail crypto-trading platform, starting with zero-commission trading for Bitcoin and Ethereum
— Crypto News Bangladesh (@Crypto_News_BD) November 5, 2022
Investors will be able to access the custodial and trading services offered by Fidelity Digital Assets, as well as purchase and sell Bitcoin (BTC) and Ethereum (ETH) through the Fidelity Crypto service. However, clients won’t be able to access the features unless their accounts have at least one dollar in them.
Have questions about the new Fidelity Crypto℠? Join our new subreddit r/FidelityCrypto and get that crypto clarity. https://t.co/8m1hGjxelS
— Fidelity Investments (@Fidelity) November 3, 2022
Fidelity is the third company to provide commission-free cryptocurrency trading, joining Robinhood and Binance. Traders in the general public might use their mobile devices to buy and sell cryptocurrencies like Bitcoin and Ethereum without incurring any commission charges.
Since there are no fees associated with trading it, it is likely to have an impact on the BTC/USD exchange rate as well.
Bitcoin Price Prediction
The 24-hour trading volume for Bitcoin is $38 billion at the current price of $20,892. During the Asian trading session, Bitcoin dropped by more than 1.5%. It has risen from yesterday’s $406 million to today’s $438 billion, putting it in the top spot on CoinMarketCap.
Bitcoin Price and Tokenomics – Source: Coinmarketcap
Bitcoin has broken through a key support level at $20,900. If Bitcoin (BTC) falls below $20,600, where the 50-day moving average is located, it may find some short-term support. If the 50-day moving average drops below the 200-day, we can expect the downtrend to continue until around $20,400 or $20,000.
Bitcoin Price Chart – Source: Tradingview
The bullish trend will likely continue with support near $20,400 thanks to the 4-hour uptrend channel. The next level of resistance for Bitcoin is at $21,000, and a breakout above this level could send BTC soaring to $21,500 or even $22,200. So, let’s use the current price of $21,000 as our starting point.
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