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Bitcoin Price At Critical Support Pre-FOMC

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Bitcoin price slumped overnight. Markets are beginning to rear ahead of today’s Fed rates announcement.

This analysis is provided by xbt.social with a 3-hour delay. Read the full analysis here. Not a member? Join now.

Bitcoin Price Analysis

Time of analysis: 12h00 UTC Wednesday

Bitstamp 1-Day Candle Chart

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From the analysis pages of xbt.social, earlier today:

Overnight, price sold off to support resistance at the previous low (horizontal blue zone). Although the move was anticipated in yestersay’s analysis, it is a pity to see this development in the chart since it tests our bullish outlook to its lower limit.

The prospect remains that the market will use the Fed announcement to continue advance, but traders should refrain from taking position until a direction is clear – possibly only tomorrow or on Friday.

Although at its lower limit, a bullish outlook remains valid:

A) 1day MACD remains above zero (magenta circle).

B) 1day stochastics are falling away from maximum (blue circle), yet, are flashing divergence (blue dots) – something that often (but not always) happens at a reversal point.

It is always advisable to stay out of the market around the time of important global news events and to enter the market once the chart indicates a clear direction of trend.

Summary

Bitcoin price holds above support in the low $590s. Today’s Fed rates announcement (scheduled for 19h00 UTC) should see the market gain volatility and, hopefully, progress toward $680. Price action below $590 should open decline to the mid $500s (Bitstamp) at the 1day 200MA (red).

Bitstamp Depth Chart and Buy/Sell Volume

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Click here for the CCN.LA interactive bitcoin-price chart.

What do readers think? Please comment below.

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Readers can follow Bitcoin price analysis updates every day on CCN.LA. A Global Economic Outlook report is published every Monday.

Disclaimer

The writer trades Bitcoin. Trade and Investment is risky. CCN.LA accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.

Bitcoin price charts from TradingView.
Image from Shutterstock.

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