Bitcoin Price closed last week at $ 115,390, with the briefly violating the $ 115,500 resistance level as it pushed in to the weekend, only to dip back and close the week just below it. Last week, a bright green light produced Bulls and maintained upward momentum this week. US producer Price Index came well under expectations on Wednesday morning last week, giving Market Bull’s hope of the impending SATS cutting resolution from the Federal Reserve. However, US inflation data the following morning was lukewarm as they were registered at 2.9%, as expected, but higher than the previous month’s reading of 2.7%. The Federal Reserve gets its work carved for this week at Wednesday’s FOMC meeting, where it has to weigh the benefits and disadvantages of cutting or not. The market fully expects a 0.25% interest rate (as seen in the polymemarket), so that any hesitation now of fat is likely to lead to a market correction.
Key support and resistance levels now
Entering this week the level of $ 115,500 is the next resistance level that Bitcoin seems to be closing above. $ 118,000, however, stands in the way over here. If Bitcoin sets another strong week, it is possible that the price is pushing over the intrawek of $ 118,000 only to close back under it on Sunday. We can expect sellers to enter strongly there and push bulls to give back some reason.
If Bitcoin sees any weakness this week or a rejection from the $ 118,000 level we need to look down to $ 113,800 level of short-term support. Below there we have weekly support that sits at $ 111,000. Closing below would probably challenge $ 107,000 low.
Outlook for this week
Zooming into the daily chart is bias just a little bearish from Sunday’s close, after rejecting from $ 116,700 last Friday. However, this can quickly return to a Bullish bias if Monday’s US stock market price is resuming its bullish tendency as well. MACD is currently trying to hold over the zero line and restore it as support for bullish momentum to resume. Meanwhile, RSI dips but stays in a bullish attitude. It will look to 13 SMA for support if sales are intensified by Tuesday.
All eyes will be at President Powell and Federal Reserve on Wednesday as he talks at 1 p.m. 14:30 Eastern. With something other than a 0.25% interest rate message at. 14:00, which probably causes significant market volatility that would certainly be wasted over to Bitcoin.
Market mood: Bullish, after two green weekly lights in a row – expects the $ 118,000 level to be tested this week.
The next few weeks
Maintaining momentum over $ 118,000 will be key in the coming weeks if Bitcoin can skip this impending obstacle in the near future. I would expect Bitcoin to continue into the $ 130,000s if it can establish $ 118,000 as support again.
Assuming that Fed lowers the rates this week, the market will then look forward to October for a further interest rate cut. Therefore, supporting market data and continued cuts will be crucial to Bitcoin’s price path in the future, which burns a bullish continuation to new heights.
On the flip side, any significant bearish events or bold surprising everyone with a decision not to cut on Wednesday will definitely return the Bitcoin award to test support levels.
Terminology Terminology:
Bulls/Bullish: Buyers or investors who expect the price to go higher.
Bears/Bearish: Sellers or investors who expect the price to go lower.
Support or support level: A level where the price should have for the asset, at least originally. The more touching support, the weaker it becomes and the more likely it is to fail to keep the price.
Resistance or resistance level: Opposite of support. The level that is likely to reject the price at least originally. The more touches of resistance, the weaker it becomes, and the more likely it is to refrain from holding back the price.
SMA: Simple Sliding average. Average prices based on closure prices over the specified period. In the case of RSI, it is the average strength index value over the specified period.
Oscillators: Technical indicators that vary over time but typically remain within a band between set levels. Thus, they fluctuate between a low level (typically represent oversold conditions) and a high level (typically represent overbought conditions). E.g. Relative strength index (RSI) and sliding average convergence divers (MACD).
Macd Oscillator: Moving average convergence divergence is a momentum oscillator that draws the difference between 2 moving average to indicate trend as well as momentum.
RSI Oscillator: The Relative strength index is a momentum oscillator that moves between 0 and 100. It measures the speed of price and changes in the speed of price movements. When RSI is over 70, it is considered to be overbought. When RSI is under 30, it is considered to be oversold.