Bitcoin November 2, 2022 – Big push

Classic announcements and reactions – The price of Bitcoin (BTC) returns to within $200 of the $20,000, and puts pressure on a decisive zone.

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Bitcoin price rocked by FED announcements

Bitcoin price rose as high as $20,816 on Bitfinex today, November 2, 2022, before plunging to an intraday low of $20,147. Cryptocurrency is trading to $20,195 at the time of writing this article. Its price is currently recording a daily loss of 1.48%.

The confirmation of a increase of 75 basis points interest rates marked the day. In a statement, the US Federal Reserve said that “the Committee has decided to raise the target range for the federal funds rate from 3 3/4 to 4%”. The announcement also underlines the objectives of a maximum employment rate, with inflation of 2% over the long term.

An upcoming hike to 50 basis points: vain unfounded hopes?

The markets were already expecting this 75 basis point increase. However, in fact, no element of language in the FED press release does not provide convincing clues at this stage, which would go in the direction of a next rise below these 75 basis points, that is to say the 50 basis points that some observers are expecting.

Nevertheless, the press release specifies that the FOMC “will be ready to adjust the direction of monetary policy”, if it perceives risks that could prevent it from achieving its objectives. The announcement cites a set of factors that the FOMC takes into account in making its decisions, such as labor market conditions, inflationary pressures, public health, etc.

A decisive zone for the price of Bitcoin, and strong support from the whales

On a daily basis, Bitcoin currently appears to be enjoying support at $20,135 – $20,180. Looking at the recent swings, this area has acted as both support and resistance.

Losing it, Bitcoin began long declines that brought its price back below $19,000. By crossing it upwards, the graph shows that the price of the cryptocurrency has started increases which have allowed it to reach at least $21,000.

Should Bitcoin lose this support zone, data from Whalemap shows that the next major support could be at the $19,000 – $19,400. The whales accumulated about 120,000 BTC there.

BTC USD: accumulation at $19,000 - $19,400
Publication of Whalemap – Source: Twitter

Did the FED disappoint the risky asset markets? Bitcoin price is currently testing an important area. The reaction – or lack of reaction – bulls would announce $21,000 or a return below $20,000 in the next few days.

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