BITCOIN ANALYSIS TODAY (November 03)
Bitcoin (BTC) saw instant volatility on Nov. 2 when the US Federal Reserve (Fed) issued its fourth consecutive 0.75% interest rate hike.
Macro factor
The Fed did raise interest rates by 0.75 percentage points early this morning and Powell said in the press conference that the inflation war is far from over.
“We still have some economic data and methods since our latest meeting that suggest rates will ultimately be higher than previously expected,” adding it was “too early” to tell. Talk about stopping raising interest rates.
However, investors' hopes were dashed by Powell's still-tough statements on inflation.
Bitcoin and Altcoins
Data from TradingView shows BTC/USD dropping to $20,200 before bouncing back up to $20,800 shortly after the Fed announced an additional 0.75% interest rate hike. After that, the market started to reverse, establishing a local bottom at $20,050 early this morning.
In a statement shared on behalf of the Federal Open Market Committee (FOMC), the Fed confirmed a 0.75% increase, marking its schedule for the steepest rate hikes in 40 years.
“The Commission seeks to maintain maximum employment and inflation at 2% for the foreseeable future. To support these goals, the Committee decided to raise the target range for the federal funds rate to 3 to 4%,” the Fed said.
The altcoin market also fell slightly along with Bitcoin following the announcement of a rate hike from the Fed.
Leading the way down is Chain (XCN) which has evaporated more than 16% in the past 24 hours. It is followed by Aptos (APT) when it loses about 8% of its value.
The largest memecoin in the market, Dogecoin (DOGE) also retraced nearly 5%, but it is still the project with outstanding activity in the past week with a growth of more than 80%.
Other projects like Shiba Inu (SHIB), Toncoin (TON), Nexo (NEXO), Ravencoin (RVN)… fell about 4-5% on the day.
About Technology
Bitcoin (BTC) continued to trade below $20,800 yesterday, due to market uncertainty.
BTC/USD dropped to as low as $20,359.85 earlier in yesterday's trading session, less than 24 hours after tracking as high as $20,545.35.
Looking at the chart, BTC has been mostly trading in the red since the weekend, which happened after a failed breakout on the relative strength index (RSI).
The RSI has failed to break out of the long-term ceiling of 63.00 at the end of the week, which serves as a signal that the bears will return.
BTC has now re-touched the EMA25, we only need 1 signal to break out of the momentum accumulation area to buy. And in case the price breaks below EMA25 and closes below, we have to stand outside and observe more, because that is a sign of the complexity of the current market!
Macro factor
The Fed did raise interest rates by 0.75 percentage points early this morning and Powell said in the press conference that the inflation war is far from over.
“We still have some economic data and methods since our latest meeting that suggest rates will ultimately be higher than previously expected,” adding it was “too early” to tell. Talk about stopping raising interest rates.
However, investors' hopes were dashed by Powell's still-tough statements on inflation.
Bitcoin and Altcoins
Data from TradingView shows BTC/USD dropping to $20,200 before bouncing back up to $20,800 shortly after the Fed announced an additional 0.75% interest rate hike. After that, the market started to reverse, establishing a local bottom at $20,050 early this morning.
In a statement shared on behalf of the Federal Open Market Committee (FOMC), the Fed confirmed a 0.75% increase, marking its schedule for the steepest rate hikes in 40 years.
“The Commission seeks to maintain maximum employment and inflation at 2% for the foreseeable future. To support these goals, the Committee decided to raise the target range for the federal funds rate to 3 to 4%,” the Fed said.
The altcoin market also fell slightly along with Bitcoin following the announcement of a rate hike from the Fed.
Leading the way down is Chain (XCN) which has evaporated more than 16% in the past 24 hours. It is followed by Aptos (APT) when it loses about 8% of its value.
The largest memecoin in the market, Dogecoin (DOGE) also retraced nearly 5%, but it is still the project with outstanding activity in the past week with a growth of more than 80%.
Other projects like Shiba Inu (SHIB), Toncoin (TON), Nexo (NEXO), Ravencoin (RVN)… fell about 4-5% on the day.
About Technology
Bitcoin (BTC) continued to trade below $20,800 yesterday, due to market uncertainty.
BTC/USD dropped to as low as $20,359.85 earlier in yesterday's trading session, less than 24 hours after tracking as high as $20,545.35.
Looking at the chart, BTC has been mostly trading in the red since the weekend, which happened after a failed breakout on the relative strength index (RSI).
The RSI has failed to break out of the long-term ceiling of 63.00 at the end of the week, which serves as a signal that the bears will return.
BTC has now re-touched the EMA25, we only need 1 signal to break out of the momentum accumulation area to buy. And in case the price breaks below EMA25 and closes below, we have to stand outside and observe more, because that is a sign of the complexity of the current market!