Bitcoin Price Prediction

The BTC/USD was closed at $46,898.00 after hitting a high of $47,541.00 and a low of $45,606.00. BTC/USD finished another day of consolidation with minor gains. A senior professor of international trade policy at Cornell University told CNBC that Bitcoin might not last that much longer as its blockchain technology is not very efficient.

Eswar Prasad criticized the leading cryptocurrency for its validation mechanism for transactions, which is environmentally destructive. He further said that bitcoin did not scale up very well. He believed that newer cryptocurrencies like Solana were better than BTC as they enabled DeFi platforms and websites to thrive and allowed the easy transfer and exchange of NFTs. These comments from cryptocurrency experts negatively impacted leading digital assets and further capped gains in BTC/USD on Monday.

According to a new study by the National Bureau of Economic Research, a small group of investors controls more of the supply of Bitcoin. The study revealed that 10,000 BTC account holders hold 5 million out of the 19 million coins in circulation, meaning 0.01% of the BTC holders control 27% of the total supply of coins worth about $232 billion.

According to crypto.com, about 114 million accounts hold bitcoin, and of those, 10,000 accounts hold about 5 million BTC. This study contrasts the statements from bitcoin advocates who have been saying for years that cryptocurrency was more democratic than fiat currency and that crypto was a way to redistribute financial power that has traditionally been in the hands of banks.

The study revealed that control of bitcoin was largely in the hands of a small group of investors and showed what bitcoin was spent on. The study also showed that 90% of bitcoin transactions resulted from a user buying something with BTC, but the transactions were made between a single user’s crypto accounts. Furthermore, on Monday, the Pennsylvania-based company Stronghold Digital Mining said that it was buying 9080 Bitcoin Rigs, which will add about 826 petahashes per second to its hash rate. These mining rigs will be installed in Stronghold’s reclamation and power generation facilities. This news also added some positive momentum in BTC/USD.

BTC/USD Intraday Technical Levels

Support Resistance

45822.4 47757.4

44746.7 48616.7

43887.4 49692.4

Pivot Point: 46681.7

BTC/USD - Technical Outlook

Bitcoin's price has fallen below $46,500 once more. BTC fell below $46,000, while bulls remained active near the $45,500 support level. A low was created near $45,600, and the price is now rising. The price appears to be building a double bottom pattern near $45,500. The price rose beyond the 23.6 percent Fib retracement level of the decline from the $48,289 swing high to the $45,600 low. The next significant resistance level might be $48,000, after which the price could surge to the $48,500 level. If the aforementioned double bottom pattern holds true, the price may move towards the $50,000 resistance zone. All the best!

Gold’s Daily Price Analysis

Gold prices ended the day at $1804.90, with a high of $1815.70 and a low of $1796.50. Despite the strength of the US dollar, gold continued its gains on Friday and rose for another session. This week, the precious metal remained high, posting its first weekly increase in five weeks after rising 0.8 percent. The US dollar fell this week when the Federal Reserve of the United States chose to withdraw its pandemic-era stimulus. This reduced the bullion price for holders of other currencies and increased gold prices.

Gold reached its highest level since November 26th during early trading hours on Friday, but it quickly lost its early gains and turned flat for the day after experiencing selling pressure in late trading hours due to the rising strength of the US dollar. The US dollar index, which measures the greenback's value against a basket of six major currencies, reversed direction and went green on Friday, recouping the majority of its previous daily losses and reaching 96.69. In contrast, the US Treasury Yield on the benchmark 10-year note maintained its bearish momentum, falling to its lowest level since December 6th, at 1.37 percent.

Given his estimates for inflation and labour market conditions, Fed Governor Christopher Waller stated on Friday that the Fed might raise interest rates immediately after the bank completes its asset purchases early next year. He also stated that he supports the plan to accelerate the pace of bond cutting beginning in January since it will allow for other monetary policy adjustments as early as spring to accommodate changes in the economic outlook. Waller's words added strength to the already surging US currency and drove it higher.

On the other hand, yellow metal increases could be attributed to growing concerns prompted by the fast-spreading Omicron variety. For example, the market saw a surge in demand for precious metals as a safe haven after New York state declared a record number of positive cases for the second day in a row, with approximately 22,000 instances. As Omicron spread, restaurants and bars were closing their doors before the holidays, despite no-restriction announcements from governments. On Friday, the United Kingdom reported over 25,000 confirmed cases of coronavirus, which was 10,000 instances more than the previous day.

Furthermore, the Group of Seven (G7) health ministers stated that the Omicron type of coronavirus was the most serious threat to global public health since it was fast spreading throughout the world after being reported in at least 77 countries. The growing number of warnings about the Omicron strain, as well as its continued spread over the world, increased the market's attraction to safe-haven assets, sending gold higher for the day.

GOLD Intraday Technical Level

Support Resistance

1799.09 1802.54

1797.22 1804.12

1795.64 1805.99

Pivot Point: 1800.67

GOLD - Technical Outlook

On Monday, gold contitnue to trade with a slight bullish bias at 1,803, having bounced off the support level of 1,795. Gold is likely to find immediate support at the 1,791 level in 2 hours timeframe. The closure of candles above this level indicates that gold is rising.

Gold’s next resistance stays on the upside at 1,814 levels. At the same time, a break over the 1,814 barriers might expose the gold price up to 1,829. The RSI and Stoch are signaling uptrend in gold. All the best!

Daily Price Outlook

The EUR/USD closed at $1.1239 after setting a high of $1.1350 and a low of $1.1235. The EUR/USD dropped on Friday after rising for two consecutive sessions amid the strength of the U.S. dollar and the weakness of the single currency euro. The market sentiment was low, spurred by the monetary policy decisions announced by three of the most important central banks, as investors started booking their profits and rebalancing their portfolios. Meanwhile, the rising concerns related to the Omicron variant also supported the risk-off sentiment, which added pressure on risk-related currency pairs like EUR/USD.

The Omicron variant extended its spread rapidly and forced many European countries to re-impose lockdown measures. The latest country to announce a painful Christmas COVID lockdown was the Netherlands. The likelihood that more countries will re-impose lockdown restrictions as the Christmas and New Year holidays approach continued to support the risk-off market sentiment.

The White House medical adviser, Dr. Anthony Fauci, suggested that people get booster shots and always wear masks in crowded public spaces while traveling to meet their loved ones. He further said that traveling would only increase the risk of infection, even among vaccinated people. The number of COVID cases in the United States has increased by about 50% since the beginning of this month, which has bolstered the safe-haven appeal in the market, pushing the USD higher and adding stress to the EUR/USD currency pair.

At 12:00 GMT, the German PPI declined to 0.8% from the expected 1.4% and weighed on the euro on the data front. At 14:00 GMT, the German ifo Business Climate also dropped to 94.7, against an estimated 95.3, and weighed on the single currency euro. At 15:00 GMT, the final CPI for the year remained flat at 4.9%. The final core CPI also remained unchanged at 2.6%. Most of the data from Europe was unfavorable, which ultimately added more downward pressure on the EUR/USD currency pair.

Meanwhile, this week, three major central banks, including the Federal Reserve, the European Central Bank, and the Bank of England, announced their monetary policy decisions. The U.S. Fed and ECB kept their interest rates unchanged but decided to speed up their winding down of asset purchases to end the process by March. At the same time, the Bank of England became the first bank in history to announce a rate hike this month after the pandemic started two years ago. Market participants were pricing these events, taking profits, and balancing their portfolios, which kept the market sentiment lower for the day before the weekend, and riskier currency pairs like EUR/USD suffered.

EUR/USD Intraday Technical Levels

Daily Technical Levels

Support Resistance

1.1238 1.1247

1.1231 1.1251

1.1228 1.1257

Pivot Point: 1.1241

EUR/USD - Technical Outlook

The EUR/USD is trading at the 1.1253 level, gaining immediate support at the 1.1234 level. The direct currency pair’s immediate resistance stays at 1.1273 level, and the closing of candles below this is pressuring on it. A rise in buying pressure and break above 1.1273 resistance level exposes the pair towards 1.1311 or 1.1348 resistance levels.

Alternatively, the support levels continue to hold at 1.1234 and 1.1197. A bearish breakout increases the chances of a downtrend until the 1.1158 support zone. All the best!

Bitcoin Price Prediction

The BTC/USD was closed at $46,716.50 after hitting a high of $48,283.00 and a low of $46,474.90. BTC/USD dropped on Sunday but remained consolidated as the market participants struggled to find a significant direction to move further. Bitcoin was under pressure over the weekend as the US Securities and Exchange Commission was continuously delaying decisions on Bitcoin exchange-traded funds (ETF) as it issued two fresh deadline extension notices. The SEC recently postponed two major BTC ETF offering proposals, Bitwise Bitcoin ETP Trust and Grayscale Bitcoin Trust's Bitcoin ETF. The SEC now expects to decide whether to approve or disapprove or institute proceedings to determine whether to disapprove Bitwise BTC ETF and Grayscale BTC ETF on Feb. 1 and Feb. 6, respectively. The delay in the SEC's decision added negative pressure on BTC/USD over the weekend.

Furthermore, the rising US dollar price also added negative pressure on BTC/USD over the weekend. The US dollar was getting strength from the latest decision by the Federal Reserve to increase the pace of its bond tapering by 50% from January. Furthermore, it was also gathering strength from its safe-haven status, which was triggered by the rising fears of the Omicron variant and its impact on global economic recovery. The variant has reached 77 countries, and its spread has been continuously increasing, with a record-high number of daily cases being reported in the US, United Kingdom, and European nations. As a result, the strong US dollar put additional downward pressure on the leading cryptocurrency, as the two negatively correlate.

On the flip side, the Mexican retail chain Elektra and the South Korean-Japanese video-game publisher Nexon have announced that they accept bitcoin payments. With the help of a partnership with BitPay, one of the largest supermarket chains in Mexico has started receiving payments in Bitcoin. The supermarket will allow its customers to pay their bills in bitcoin instead of fiat currencies, and this news added some positive momentum surrounding BTC.

Furthermore, BitPay also announced a partnership with another major company, Nexon, to enable its customers to pay their bills in BTC. Players will be able to buy games like MapleStory, KartRider, Mabinogi, V4, and many more using BTC and ten more cryptocurrencies. The reason for including the digital asset payment method was players' growing interest in cryptocurrencies.

BTC/USD Intraday Technical Levels

Support Resistance

46033.2 47841.3

45350.0 48966.2

44225.1 49649.3

Pivot Point: 47158.1

BTC/USD - Technical Outlook

Bitcoin has begun a recovery wave above the $46,500 barrier level and cleared the $48,000 mark, but could not rise past the $48,200 mark.

A high near $48,289 was achieved, and the price corrected lower. It was trading below the 50 percent Fib retracement level of the upward run from the swing low of $45,520 to the high of $48,289. The bitcoin price is currently trading below $48,000 and the 100 hourly simple moving average.

On the upside, an immediate barrier is near the $47,000 mark. The first significant resistance is located near the $47,200 level and the 100 hourly SMA. On the hourly timeframe of the BTC/USD pair, a significant negative trend line is forming with resistance near $47,200.

Near the $46,500 level is the 61.8 percent Fib retracement level of the upward run from the $45,520 swing low to the $48,289 high. If the price falls below $46,500, it may move towards the $45,500 support. The next significant support level is near $45,000, below which there is a chance of a strong drop below $43,200.

Gold’s Daily Price Analysis

Gold prices were closed at $1798.20 after setting a high of $1800.70 and a low of $1775.70. Gold reversed course and moved higher on Thursday amid the persistent weakness of the US dollar. Gold moved up to the $1800 level on Thursday after the US dollar came under pressure amid the latest decision by the US Federal Reserve to speed up the withdrawal of its pandemic-era stimulus. This decision raised the market's risk sentiment and weighed on the safe-haven US dollar, which ultimately pushed gold higher as both have a negative correlation.

The US Dollar Index, which measures the greenback's value against the basket of six major currencies, fell for the second consecutive session and extended its decline to drop lower at 95.85. While the US Treasury Yield on the benchmark 10-year note fell on Thursday to 1.41%, dragging the greenback lower and helping to push yellow metal higher.

At 18:30 GMT, the Philadelphia Fed Manufacturing Index declined to 15.4 from the forecasted 29.6 and weighed on the US dollar on the data front. Unemployment claims increased to 206K from 196K expected, weighing on the dollar. Building permits increased to 1.71 million from 1.66 million expected, bolstering the US dollar. Housing starts increased to 1.68 million, exceeding the 1.57 million predicted, bolstering the US dollar. At 19:15 GMT, industrial production declined by 0.5%, against an expected 0.6%, and weighed on the US dollar.

The capacity utilization rate remained flat at 76.9%, as projected. At 19:45 GMT, the Flash Manufacturing PMI dropped to 57.8 from the anticipated 58.6 and weighed on the US dollar. The Flash Services PMI also declined to 57.5 from the predicted 58.9 and weighed the US dollar. Most of the economic data from the US was unfavorable, which dragged the US dollar and helped gold recover its previous losses on Thursday.

Furthermore, the rising prices of gold could also be attributed to the surprise rate hike delivered by the Bank of England on Thursday, which became the first central bank in the world to announce a rate hike in the aftermath of the coronavirus pandemic that damaged the global economy nearly two years ago. The Bank of England, along with the Federal Reserve, has warned that inflation unleashed by the pandemic was the one thing they had not expected. 1791.53 is the pivot point.

GOLD Intraday Technical Level

Support Resistance

1782.36 1807.36

1766.53 1816.53

1757.36 1832.36

Pivot Point: 1791.53

GOLD - Technical Outlook

On Friday, gold traded substantially higher at 1,803, breaching the bearish trendline at 1,789. Gold is likely to find quick support at the 1,789 level in 2 hours. The closure of candles above this level indicates that gold is rising.

Gold’s next resistance stays on the upside at 1,814 levels. At the same time, a break over the 1,814 barriers might expose the gold price up to 1,829. The RSI and Stoch are signaling uptrend in gold. All the best!

Daily Price Outlook

The ETH/USD ended the day at $3956.35, having reached a high of $4107.85 and a low of $3955.35. The ETH/USD pair dropped on Thursday and reversed course after rising for two consecutive days amid the prevailing market sentiment. As per the data from the tracking website Watch the Burn, around $800,000 worth of the second-largest cryptocurrency by market capitalization is currently being burned every hour. Every 60 minutes, around 202 ETH are burned, which means nearly $31 million worth of the cryptocurrency, 7642 ETH, are burned in a day. The net supply reduction for ETH stands at 56.02%.

Since ETH's burning mechanism was introduced, about $4.8 billion worth of ETH has been burned, while its total net issuance was $2.3 billion. The supply reduction helps Ethereum's inflation rate drop and could make the cryptocurrency deflationary if the burn rate gets high enough. Following the Fed's rate announcement on Wednesday, Ethereum reclaimed the $4000 level as the price of altcoins improved. In addition, the Federal Reserve released that it will not change interest rates, causing the primary cryptocurrency to react immediately. When ETH reclaimed its $4K level, the whole cryptocurrency market cap gained about $150 billion in a single day.

The Bank of Thailand was planning on introducing regulations on cryptocurrencies to reduce the risks associated with them added a negative impact on the whole market, and the second-largest cryptocurrency, ETH, also followed the trend and dropped on Thursday. Meanwhile, the low trading volume ahead of the holiday season also kept the price momentum subdued on Thursday, and the cryptocurrency ETH/USD remained on the back foot.

ETH/USD Intraday Technical Levels

Daily Technical Levels

Support Resistance

3905.19 4057.69

3854.02 4159.02

3752.69 4210.19

Pivot Point: 4006.52

ETH/USD - Technical Outlook

On Friday, the ETH/USD is trading at the $3,925 level. Above the $3,850 and $4,000 resistance levels, Ethereum began a steady comeback wave. ETH has even surpassed the $4,050 mark and the 100 hourly simple moving average. However, the price could not rise beyond the $4,080 and $4,100 resistance levels. Before the price began to fall, a peak was formed near $4,121. A move below the $4,050 and $4,000 support levels occurred.

On the hourly chart of ETH/USD, there was also a breach below a significant rising channel with support near $4,040. The pair is currently trading between $3,950 and the 100 hourly simple moving average.

The price fell below the 23.6 percent Fib retracement level of the bullish run from $3,650 to $4,121. On the upside, an immediate barrier is near the $4,040 mark. The next significant resistance is located near $4,080. A clear rise over the $4,080 mark and the recent higher could signal the commencement of a new uptrend in the short term.

The bulls' next target might be $4,120. Closing above $4,120 might lead to a rise towards $4,250.

Bitcoin Price Prediction

BTC/USD was closed at $47,675.0 after reaching a high of $49.462.10 and a low of $47.561. On Thursday, BTC/USD reversed its course and dropped amid negative developments surrounding the Bitcoin ecosystem.

The government of Thailand is preparing a new regulatory framework for cryptocurrencies like Bitcoin to minimize risks and improve investor protection. In January, the central bank of Thailand will define "red lines" for the crypto industry.

The governor of the Bank of Thailand (BoT), Sethaput Suthiwartnarueput, said that the bank wants to strike the right balance between allowing financial innovation and managing risks. He said that the new rules would safeguard consumers if the risks were underappreciated. The restrictions will be specified in a collaboration between the Bank of Thailand, the finance ministry, and the Thai Securities and Exchange Commission. Unfortunately, this news of regulations like cryptocurrencies cannot become a means of payment, and more negative pressure on the whole crypto market and BTC/USD followed the trend and declined on Thursday.

On the other hand, the International Monetary Fund's (IMF) Chief Economist, Gita Gopinath, stated that developing economies should refrain from banning cryptocurrency and that regulating the industry is more important. She said that global policy on digital assets was an urgent need to address the challenges the technology poses to emerging markets. These comments from Gopinath had a subdued effect on the whole market, and BTC/USD remained on the downside.

Furthermore, the trading app Robinhood has recently announced that its users will gift friends and family crypto over the holiday season. Starting on Dec. 22, all Robinhood users, except those who belong to Nevada and Hawaii, will be able to spend as little as $1 in BTC or six other cryptocurrencies with a personalized digital card starting on Dec. 22. The timeline for accepting the gift has been set as 14-days, at which point the user will not be charged. This news positively impacted cryptocurrencies, but it also capped further losses in the BTC/USD pair.

BTC/USD Intraday Technical Levels

Support Resistance

47162.0 50080.0

45423.0 51259.0

44244.0 52998.0

Pivot Point: 48341.0

BTC/USD - Technical Outlook

Bitcoin has begun a recovery wave above the $48,500 resistance level. However, BTC could not break beyond the $49,500 barrier level and attempted twice to clear $49,500, but there was no decisive break. As a result, a bearish reaction occurred below the $48,500 mark. The price fell below the 50 percent Fib retracement level of the upward run from the swing low of $46,662 to the high of $49,512. It is currently trading below the $48,500 mark and the 100 hourly simple moving average. The first big support is currently emerging near the $47,500 mark and the trend line. If the price breaks below the trend line, it may expose BTC towards the $46,500 mark. The next significant support is near $45,800. All the best!

Gold’s Daily Price Analysis

Gold prices were closed at $1780.20 after setting a high of $1782.05 and a low of $1753.70. During early trading hours, gold dropped to its lowest since October 6th on Wednesday, but in late trading hours, it found some support and started rising after the US retail sales data release.

The US Dollar Index rose to 96.91, its highest since November 24th, during early trading hours on Wednesday. However, the greenback started declining during the American trading session and reached 96.51 after the US retail sales data against the currency.

At 18:30 GMT, Core Retail Sales fell to 0.3% from 0.9% expected, weighing on the greenback on the data front. Retail sales in November fell to 0.3% versus a forecasted 0.8%, weighing on the US dollar. The Empire State Manufacturing Index surged to 31.9 against the anticipated 24.9 and supported the US dollar. Import prices also advanced to 0.7% against the projected 0.5% and supported the US dollar.

At 20:00 GMT, business inventories increased by 1.2% against the expected 1.0% and weighed on the dollar. The NAHB Housing Market Index remained flat with an expectation of 84. Most of the data released on Wednesday was unfavourable for the US dollar, which helped gold strengthen in the market.

Meanwhile, the US central bank signalled that its inflation target had been met on Wednesday, which has paved the way for about three interest rate hikes next year. The Federal Reserve has said that it will cut back its stimulus program more quickly than planned due to rising inflation.

The Federal Reserve had already announced that it was tapering off the monthly support introduced to bolster the economy during the pandemic. However, on Wednesday, the officials said that the process would be speeded up and that the stimulus would end by March. This news should have had a negative impact on the precious metal, but the initial reaction came against the US dollar as it was highly expected, and markets had already priced this move.

GOLD Intraday Technical Level

Support Resistance

1751.24 1779.54

1737.97 1794.57

1722.94 1807.84

Pivot Point: 1766.27

GOLD - Technical Outlook

Gold is trading with a slight bullish bias at $1,782 per ounce. On the bullish side, the precious metal gold’s significant resistance stays at 1,787, and an uptrend can expose its price towards the 1,796 level.

On the lower side, gold is gaining immediate support at 1,780, and a break below this level exposes the metal towards the 1,770 pivot point support level. The RSI and MACD are in the overbought zone; however, the recent candles support an uptrend. A surge in bullish pressure dominates an uptrend above 1,780 and vice versa. Good luck!

Daily Price Outlook

The EUR/USD pair ended the day at $1.1285 after reaching a high of $1.1300 and a low of $1.1221. The EUR/USD rose on Wednesday after dropping for two consecutive sessions. The losses in EUR/USD could be attributed to the subdued movement of the US dollar. On Wednesday, the US dollar came under pressure despite the Federal Reserve’s announcement that it was doubling up the pace of reducing economic support. At its December monetary policy meeting, the Fed said that it would double the pace of its QE taper to $30B a month from January. This news pushed Wall Street higher and, in turn, limited the dollar’s strength.

After the monetary policy meeting, US Federal Reserve chairman Jerome Powell noted that economic activity was on track to expand robustly this year. However, he added that the Omicron variant still poses risks to the outlook. He also noted that all officials think the labour market will reach maximum employment next year. He further said that the Fed’s focus would remain on bottlenecks and supply constraints as inflation is expected to decline by more than 2% by the end of next year. Given these comments, the stock market skyrocketed and pushed the dollar back to the downside, strengthening its rival currencies.

On the data front, at 12:45 GMT, the French Final CPI remained flat with expectations of 0.4%. At 18:30 GMT, core retail sales in the United States fell to 0.3%, versus the expected 0.9%, weighing on the greenback. Retail sales in November fell by 0.3% versus a predicted 0.8% drop, weighing on the US dollar. The Empire State Manufacturing Index rose to 31.9 against a forecasted 24.9 and supported the US dollar. Import prices also improved by 0.7% against the anticipated 0.5% and supported the US dollar.

At 20:00 GMT, business inventories surged to 1.2% against an estimated 1.0% and weighed on the dollar. The NAHB Housing Market Index remained flat with projections of 84. Most of the data came from the US side, which weighed on the US dollar, ultimately putting upward pressure on the currency pair EUR/USD.

Meanwhile, the focus of market participants shifted to the European Central Bank as it is expected to hold its monetary policy meeting on Thursday. The bank is widely expected to maintain its current policy on hold. The single currency euro gathered strength ahead of the release of the ECB’s monetary policy decision and helped the currency pair EUR/USD remain higher on board on Wednesday.

EUR/USD Intraday Technical Levels

Daily Technical Levels

Support Resistance

1.1231 1.1305

1.1206 1.1352

1.1158 1.1378

Pivot Point: 1.1279

EUR/USD - Technical Outlook

The EUR/USD is trading at the 1.1284 level, gaining immediate support at 1.1271, which is extended by a pivot point level. The break below the 1.1271 level exposes the pair towards the next support level of the 1.1243 level. Further on the lower side, the next support stays at 1.1193 or 1.1162.

On the upper hand, the downward trendline extends resistance at the 1.1290 level. The break above this level exposes the EUR/USD towards the 1.1320 or 1.1348 level. On Thursday, the bullish bias dominates over the 1.1271 level. All the best!

Bitcoin Price Prediction

The BTC/USD was closed at $48,901.0 after placing a high of $49,520.0 and a low of $46,602.0. BTC/USD extended its gains and rose for a second consecutive session on Wednesday mainly because of the weakness of the US dollar. The US dollar, which has a negative correlation with the leading cryptocurrency BTC, dropped on Wednesday after the stock markets rallied higher amid the latest announcement from Federal Reserve. The US central bank said that it was increasing its reducing bond purchases from January.

After the monetary policy meeting, Fed chair Jerome Powell said that Fed would speed up stimulus withdrawal by $30 billion every month to wind down early next year, doubled from the current pace of withdrawal of $15 billion every month. Federal Reserve acknowledged the threat of inflation reaching a 39-year high level and said that the quicker winding down of the asset purchases could allow it to proceed more quickly to start raising interest rates for the first time since 2018.

Fed cut interest rates closer to zero after the spread of the coronavirus in March 2020 began to hit global markets and economies, and it has held them there since then. The rising inflation and increased consumer prices have raised concerns in the market. Many digital-asset traders were closely watching the Fed announcement on Wednesday as they believe the cryptocurrency is a better hedge against the potential debasement of the US dollar that might result from the monetary stimulus.

Apart from this, the US dollar was under pressure on Wednesday despite the favourable Fed decision. The DXY dropped and reached 96.51 level after the Wall Street indexes moved higher. The rising stock prices in the US added further negative pressure on the US dollar and dragged its prices to the downside. The greenback's weakness then supported the leading cryptocurrency and pushed it higher on board.

Furthermore, Tesla CEO Elon Musk believed that Bitcoin was not a good currency for everyday payments against the meme-based cryptocurrency DOGE. According to Musk, BTC was not a good substitute for transactional currency; instead, it was an excellent store of value. He said that Dogecoin was better suited for transactions that were actually created as a joke. The transaction value of Dogecoin was more than bitcoin as people tend to use BTC for holding rather than making payments because the cost per transaction was very high. These negative comments from Musk caped further gains in BTC/USD on Wednesday.

BTC/USD Intraday Technical Levels

Support Resistance

47162.0 50080.0

45423.0 51259.0

44244.0 52998.0

Pivot Point: 48341.0

BTC/USD - Technical Outlook

Bitcoin has begun a recovery wave above the $47,500 resistance level with BTC bull's increased momentum to break through the $48,000 barrier level. The price broke the Fib retracement level of the latest slide from the $48,762 swing high to the $46,666 low. Furthermore, on the hourly chart of the BTC/USD pair, there was a break above a connecting negative trend line with resistance near $48,200.

Bitcoin is currently trading above the $48,500 mark and the 100 hourly simple moving average. It is approaching the $49,250 resistance level. The 1.236 Fib extension level of the recent slide from the $48,762 swing high to the $46,666 low appears to be functioning as resistance.

Near the $48,000 mark, the first substantial support is formed. The primary support is presently close to $47,500. A breach below the $47,500 support level may signal the commencement of a new drop in the near future. The scenario above might fall into the $45,000 support zone.