Bitcoin is holding steady below a certain price barrier as it anticipates the Federal Open Market Committee (FOMC) meeting. There’s also a chance that it might drop to the $33,000 support level to trigger a movement of funds.
The Bitcoin (BTC) price is showing signs of overheating, and there are calls for a slight pullback to allow new investors to enter the market before the next rally pushes it above $40,000. In the last 24 hours, Bitcoin’s value has dropped slightly to $34,370, although it’s still up by 0.4% over the past week, 21% over the past month, and 66.6% in the last year, according to CoinGecko.
While there’s still optimism about the potential approval of Bitcoin spot exchange-traded funds (ETFs), the excitement and discussions on this topic have decreased significantly. Trading volume on most exchanges has also decreased, with Bitcoin recording only $13 billion, a 17% drop in the last 24 hours.
In the meantime, various Bitcoin ETF tickers have appeared on the Depository Trust & Clearing Corporation (DTCC) website, with the latest one being the Invesco Galaxy Bitcoin ETF, identified as ‘BTCO.’ The first ticker was for BlackRock’s spot Bitcoin ETF, listed as ‘IBTC.’
A spokesperson from DTCC stated that these tickers are a standard practice and don’t indicate any approval by the SEC, either now or in the future.
Bitcoin Price Tests $34,000 Support
Bitcoin’s recent performance shows it’s oversold, as indicated by the Relative Strength Index (RSI). Back in August, the RSI was at a very low point (18), then it moved into overbought territory last week, peaking at 87.
Now, a gradual correction is underway, and the RSI is expected to return to a more neutral level below 70. Despite several attempts to break through the $35,000 resistance, Bitcoin’s price fell to $33,384 at one point.
Crypto analyst Rekt Capital agrees that Bitcoin is in a consolidation phase below the $35,000 resistance. They predict that the upcoming Federal Open Market Committee (FOMC) decision on US interest rates might cause a small dip, testing the $33,000 support level.
Bitcoin price prediction daily chart | Tradingview
This could be an opportunity for traders to prepare for new entry positions, with a target in the range of $36.5K to $37K.
#Bitcoin still consolidating beneath resistance.
FOMC coming up, so I wouldn't be surprised that we'll be taking liquidity beneath us.
Retest at $33K?
Overall, that area is a clear entry point, next target remains to be $36.5-37K. pic.twitter.com/AjSqItFRvf
— Michaël van de Poppe (@CryptoMichNL) November 1, 2023
According to CryptoQuant, a blockchain data analytics platform, Bitcoin (BTC) is showing signs of approaching an overheated state. This suggests there’s a significant chance that BTC might experience a retracement before its next notable increase.
CryptoQuant points to previous instances where Bitcoin’s futures Open Interest (OI) entered the overheating zone. In June 2023 and October 2022, this occurred, and within a couple of months, the price of Bitcoin dropped. In November 2022, there was a crisis involving the exchange FTX, leading to a more substantial futures liquidation compared to August 2023. The platform now indicates that the OI has recently entered the overheating zone again, raising concerns about a potential price correction.
Bitcoin’s Role as a Safe Haven
Certainly! The ongoing conflict between Israel and Hamas has caused some people to view Bitcoin as a safe investment option. This is because they have become less confident in U.S. Treasury bonds as a safe asset due to concerns about interest rates.
As a result, Bitcoin’s price has gone up by about 23% during this time, while the value of 10-year Treasury notes has fallen. These discussions about Bitcoin being a safe haven are happening before a Federal Reserve meeting where they are expected to keep interest rates unchanged at a high level of 5.25 to 5.5 percent.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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