Bitcoin price action is awkward due to hesitancy and frequent profit taking. Yet, price has continued pushing higher all day and we look at the prospects going into tomorrow’s Fed Rate announcement.
Bitcoin Price Analysis
Time of analysis: 14h30 UTC
BTCC 1-Hour Chart
From the analysis pages of xbt.social, earlier today:
The bitcoin price chart looks to be pushing higher despite tomorrow being a day best spent out of the market.
The trader’s objective is to get out of the market before a surprise forces him or her out. Of course, the market might fling to the upside and rally to an amazing new high, but this is not the probable outcome that makes us prefer a cautious approach.
The Fed has, in the past, disappointed market expectations, and also accidentally “leaked” information prior to an announcement. Being in the market with open positions exposes our account funds to unnecessary risk, so we’re looking for an exit.
xbt.social analysis identified a compelling buy signal in yesterday’s late-day chart. The trade has yielded profit and appears to have some additional upside in the tank.
Two overhead Fib lines imply possible price targets between 3100 and 3300 CNY in the BTCC chart and around $470 in the Bitstamp chart.
Keep an eye on RSI (second from top) which may diverge on any new high – remember that there is also the November top near 3300 CNY.
Unless the majority of bitcoin traders abandon the market wisdom to stay out of trades prior to major announcements, we’d expect price to consolidate prior to the Fed announcement at 19h00 UTC on Wednesday, and to jump once the market has processed the announcement content and implications.
Bitfinex Depth Chart and Buy/Sell Volume
What do readers think? Please comment below.
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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.