BTC has been consolidating lately, bouncing off a solid support line going back to the end of May, at around the $9,000 level. This level used to be resistance, but then became support (blue arrows), which is usually a sign that the bull run is still intact.
So what might get BTC out of its current consolidation triangle? As I mentioned in a prior post, much of BTC's movement has been inversely correlated to the US dollar (lookup ticker DXY for some background, or bring up my last post). Recently the dollar has seen some strength, with one wave up since the end of June, and a second wave up since the middle of July. This is one reason why BTC has been falling.
But this could all change at 2:00 pm Eastern time on July 31. That's when the US FOMC is going to announce its interest rate decision at the end of its 2-day meeting. Most expect them to announce a 0.25% (one quarter of one percent) cut in interest rates. If they do, we should see the USD fall back down to its late June level, and BTC rise back up to $14,000 (not overnight, of course, but rather quickly I would expect).
Whichever way it goes, the current triangle is telling us that BTC will break one way or the other any day now. Let's hope it's up!
So what might get BTC out of its current consolidation triangle? As I mentioned in a prior post, much of BTC's movement has been inversely correlated to the US dollar (lookup ticker DXY for some background, or bring up my last post). Recently the dollar has seen some strength, with one wave up since the end of June, and a second wave up since the middle of July. This is one reason why BTC has been falling.
But this could all change at 2:00 pm Eastern time on July 31. That's when the US FOMC is going to announce its interest rate decision at the end of its 2-day meeting. Most expect them to announce a 0.25% (one quarter of one percent) cut in interest rates. If they do, we should see the USD fall back down to its late June level, and BTC rise back up to $14,000 (not overnight, of course, but rather quickly I would expect).
Whichever way it goes, the current triangle is telling us that BTC will break one way or the other any day now. Let's hope it's up!