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Market Watch Oct 29: Is Bitcoin On the Verge of a Breakout?

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With Bitcoin up by 2.34% in the last 24 hours and trading at $20,741 investors hope the next move will likely determine the trend for weeks to come. It’s now a wait-and-see for the crucial $21,000 to be breached.

The past two months saw Bitcoin accumulate minor gains that placed it in line to exit the sideways trading that led to consolidation in the $19,000 – $20,000 range for weeks. The global crypto market mood is more bullish. But the crucial test is the upcoming Federal Reserve’s Federal Open Market Committee (FOMC) meet. The U.S central bank is expected to raise the main interest rate by 75 basis points. It’s to be seen what Jerome Powell, the Fed chair, will do.

Analysts believe Bitcoin is entering the next phase of some technical structure like Wyckoff – a range break or some sort of support resistance flip. However, the BTC price remains capped below the 200-MA, and it’s unclear if the 20-MA will now serve as support for Bitcoin’s price. For 36-days, the popular cryptocurrency has been trading in the $18,600 – $24,500 range; it remains near the middle of that range. Analysts say BTC’s move to $21,000 did not set a significant daily higher high nor escape from the current range.

Jim Wyckoff, an analyst, believes the bulls are still in control after battling with bears to take charge. He outlined that price action throughout the week saw a bullish upside breakout from the choppy and sideways trading range of the past few weeks. Moreover, a fledging price uptrend is in place on the daily bar chart with bulls having the overall near-term technical advantage to show more upside price action in the near term.

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