Bitcoin: Investors hesitant, BTC holds supportThe Fed cut interest rates by 25 basis points, but it is questionable whether another rate cut in December will occur, as previously expected. The US Government continues to be in a state of a “shutdown”. Fed Chair Powell noted that inflation might stay elevated in the future, while risks around the job market are emerging. Taking into account a lot of insecurities currently surrounding financial markets, investors are still not in the mood to place their funds into riskier assets. BTC price moves are pointing that investors are currently in favour of waiting for clearer signals in terms of macro clarity and regulatory moves in order to shift back their funds into the crypto market. In this sense, volatility is likely to remain elevated while the upside may be constrained until a clear trigger emerges in the future period.
BTC price tested the $116K level at the start of the week, but soon reverted back. The lowest weekly level at $106K was reached on Thursday, but the stronger down trend started after the FOMC meeting. The RSI is holding around the level of 45, but the clear oversold market side has not been reached. The MA50 and MA200 are getting closer to one another, but the potential cross is still not in store due to distance between lines.
BTC is closing the week by testing the $110K short term support level. Charts are pointing that the short recovery might lead BTC toward the $111K. A clear breach of this level would lead BTC back toward the $116K as currently strong resistance. Still, risks hold toward the downside, where levels around the $107K could be tested again.
