Linda! BTCUSD-> The calm before the storm! Binance: BTCUSDT By RLinda – Technische Analyze – 2022-11-02 18:04:44

BTCUSD It is currently swinging in a tight trading range of $20,300-$20,800 awaiting the FOMC decision and the US Federal Reserve, which indicates that investors are hesitant about the major news. In general, there is a state of risk aversion in the market before the press release, which is expected during the New York session

glimpse

(Chart 1 indicates consolidation with narrow range and MA50 and MA200 indicators at 1 hour)

Important:

  • -high inflation .
  • Federal Reserve meeting (expecting a rate hike)
  • -Cheap Bitcoin The growth in the hash rate negatively affects the mining companies
  • -piracy
  • – the bottom Bitcoin (Are you there?)
  • – Technical Analysis.

inflation One continuously High, and therefore the market expects the Fed to raise interest rates by 75 basis points. In such an outcome, all eyes will be on the December meeting and it will be especially important about the dynamics of the core inflation It raises the interest rate for the fifth time.
In the meantime, investors are hoping for luck and looking for signs of a slowing rate hike in both the upcoming press release and the December meeting.

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(Chart 2 is an illustration of a strong drop, a cheap price and the usual shortage volatility )

Cheap Bitcoin and sharp An increase in the hash rate (other peaks) in the network causes problems for miners.

Bitcoin Hash is the amount of processing power transferred to the blockchain during the mining process

Companies that depend on Bitcoin Mining as their only business and source of income is currently struggling:

  • – Each block becomes more competitive
  • Significantly high energy prices
  • – Retail prices are going down.
  • Low profitability.

drop in price Bitcoin which has decreased 75% of its value continuously Above $69,000, definitely doesn’t make things easier for miners

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(Chart 3 compare the 2018-2019 bottom and find the bottom of the present)

Just before midnight GMT On Tuesday, crypto exchange Deribit was hacked. $28 million in BTC, ETH and USDC was stolen, while client funds were safe and losses were covered from the company’s reserves. The market has not reacted much to this fact and continues to consolidate ahead of the more important news.

Most investors and analysts tend to think that the market continues to look for a bottom:

  • – Large amounts of BTC It has already “changed”, however, the scale is still below the 2018-2019 low
  • – In this 2022 cycle, there are still a few days to say that a bottom has formed and it may need another phase of “redistribution” to test the resolve of investors in the market
  • There are no signs yet of a significant influx of new market demand
  • – There is still no hint of redistributing the initiative to the strong hands of the big players

glimpse

(Illustration 4 of an equilateral triangle. “The Calm Before the Storm”)

from one Technical Analysis Perspective, we see a decrease volatility And the strong lineup that will press the price before the next press release

On the lower time frame, we see an equilateral triangle forming after the recent surge in energy and momentum to record highs at +21,000 in recent weeks.
This pattern indicates neutrality among investors for the time being. The price has entered the ‘calm before the storm’ phase.

The breakdown of one of the boundaries of this pattern can provoke a strong movement in one direction or another:

  • -on me rising side to sharp increased demand for Bitcoin You may let it beat $20,576 resistance area And reach the $21,000 level. Again rising A break above $21,000 could raise BTC to $21,900
  • The goal of the urgent action is to support 19,500 dollars

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(Chart 5 Technical Indicators at 4H)

In the 4h time frame, Major BTCUSD Trade in one Uptrend channel With support around $20,300 and resistance around $20,700.

  • Tested with the touch and uniformity of the modern MA-50
  • For the 200-MA, the price should move about 4% of its movement, which could indicate strength support area And the price in the room rising is moving.
  • -RSI is behind the sellers which indicates a slight reversal in the local trend
  • -MACD too alcohol market
  • – The press release about the price can justify the lower price
  • Breaking the strong support will force the price to fall to the 18500 . area

glimpse

(Chart 6 – the price is in the neutral position, but at the same time in the risk zone)

An important nuance is the merge – 20433 – 18510.
On the 26th, the price is trying to break through the resistance, but it is clear that the market lacks the liquidity and energy to overcome this area.

Based on the foregoing, it follows:

  • – An equilateral triangle is formed in uniformity resistance area A breakdown of the support can cause the price to return to the limits of consolidation
  • Too little positive news to beat the strong resistance area
  • The market has yet to experience global lows in the global downturn.
  • – there Federal Reserve Interest rate increases are coming, which is likely to adversely affect price trends.

Have you ever wondered what will happen to bitcoin? Is it safe to say that everything is clear?

Sincerely, R. Linda!

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