Bitcoin has dropped 1.6% over the past 24 hours to trade at $20,518 at the time of writing. On the other hand, the broader cryptocurrency market capitalization dropped 1.8% during the same time, but it is still above $1 trillion.
Bitcoin price analysis
After weeks of rejection, Bitcoin broke past the $20K levels last week after a notable bullish rally. Bitcoin is still up over 5% following the slight gains recorded last week.
Bitcoin’s momentum is yet to turn bullish despite the recent upside. The rally has paused, and a bearish reversal pattern could be formed. However, the price action is yet to form a trend reversal. Over the past 24 hours, BTC has traded between $20,436 and $20,873, showing low volatility in the coin.
The daily chart shows Bitcoin trading in range, indicating an apparent fight for control between the bulls and the bears. The Relative Strength Index (RSI) is at 48, showing that the coin is neither overbought nor oversold.
Looking at Bitcoin’s price movement over the past week, it is clear the price action is being rejected at $20,800. Positive sentiment will return if the price breaks this barrier, thereby igniting a rally toward $21K.
In the short term, the trend appears bearish due to several macro factors. Therefore, if Bitcoin’s price is once again rejected past $20,800, the most likely scenario would be a plunge toward the $18K range.
Macro factors influencing BTC’s short-term price action
Several factors will influence how Bitcoin’s price will move in the coming days. The Federal Open Market Committee meeting is slated to happen this week. The Fed is expected to increase the interest rates by 75 basis points this week.
There have been rumors that the Fed will slow down its aggressive stance on interest rates. However, a report by Goldman Sachs economists now says that the Fed will raise interest rates by as high as 5% by March next year, which is 25 basis points higher than the earlier estimates.
On the other hand, the US dollar index (DXY) is moving sideways as markets remain anxious about the results of the FOMC meeting. The Fed is also expected to release its data regarding the economy. If the DXY falls further, fears of recession will be triggered, causing investors to dump risk assets.
Altcoins to consider buying
If you are watching Bitcoin’s performance this week, you might also consider checking out some of the best presales happening right now.
Dash 2 Trade could be the next token to explode, given the success of its presale. The D2T presale has raised more than $3.47 million. The presale is in stage two, where 1 D2T = 0.0513 USDT. D2T is a utility token as it powers the Dash 2 Trade platform providing trading signals to novice and experienced traders.
The other presale you should consider investing in is for IMPT. IMPT is the native token for the IMPT.io project focused on lowering carbon emissions. The IMPT presale has already raised more than $11.63 million.
Calvaria is also one of the largest presales happening right now. Calvaria is a blockchain gaming project seeking to allow non-crypto gamers to access play-to-earn by not mandating the use of cryptocurrencies. The RIA presale is currently in stage three, raising over 890,000 USDT. Stage three is 65% complete.
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