Bitcoin on October 28, 2022 – Macro fishing
Soon the recovery? The price of Bitcoin (BTC) continues to come up against a wall of resistance, which prevents it from seriously tackling levels above $21,000. However, the macro backdrop may finally give the bulls the strength they need in the long run.
The price of Bitcoin and the dollar in the green
Bitcoin price rises to $20,764 and drops to $20,055 on Bitfinex today, October 28, 2022.
Cryptocurrency is trading at $20,740 at the time of writing this article. Its price is currently registering a daily gain of 2.15%. The day is tinged with green for Bitcoin, although the dollar is currently continuing its bullish rebound.
Some traders point to encouraging inflation data. The founder of the Eight trading company, Michaël van de Poppe, noted the US GDP Leading Price Index came in at 4.1%, versus a forecast of 5.3%.
This index recorded a drop “of nearly 5% in one quarter”, or “ a sharp drop for inflation “. The PCE index gets up meanwhile at 5.1%, “while 5.2% was expected”.
The US Federal Reserve uses the Core PCE to help it make decisions about monetary policy. Are these figures in line with a probable downward adjustment of the next rate hikes, and will they thus favor risky assets?
Wall of resistance and essential supports
Daily, the Bitcoin price chart shows that the cryptocurrency appears to have found support at around $20,310. This level had acted as resistance in the past.
Referring to the recent swings in the price of Bitcoin, if the cryptocurrency loses this support, the next support could be seen below $20,000, more specifically at $19,825, then at $19,580, and $19,070.
In terms of resistance, the Material Indicators platform shared a chart taken from Binance’s order book data, while pointing out the existence of “a sell wall defending technical resistance at” the moving average of 100 weeks, which is currently around $20,850.
And heading into the weekly close, trader Rekt Capital shared a chart that shows Bitcoin price “hit” a resistance zone at $21,000-$22,000. Cryptocurrency has already suffered a rejection there.
If the bulls resume their course, this trader has put forward scenarios of a reconquest of $23,000, then $25,000, while not ruling out the possibility of a fall to $14,000.