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Investing.com – Yesterday, the initially reacted positively to the . This is because the 0.75% increase was expected by the market and the accompanying statement hinted at smaller rate hikes.
The positive momentum did not last long, however, as during his press conference, Fed Chairman Jerome Powell said the central bank remained committed to bringing the euro under control through its tight monetary policy. The markets then understood that smaller rate hikes did not mean that a trend reversal was in sight, but that they extended the period before the end of the rate hike cycle. This was confirmed by the statement that “the final level of interest rates will be higher than expected so far”.
The impact of the monetary policy measures taken so far on US inflation will be revealed by and on November 10 and 15. In the absence of a significant decline, bitcoin operators should lack imagination to drive the price up.
Within the bitcoin community, many believe it is only a matter of time before the cryptocurrency breaks the magic $100,000 mark. Allianz (ETR:) Chief Economist Mohamed El-Erian disputes that idea. He certainly sees the growing importance of BTC as a reserve currency, but from his point of view, this does not justify a price of 100,000 dollars being reached.
The big craze that catapulted the cryptocurrency to $70,000 last November will not happen again, he says.
Bitcoin price technical benchmarks
Bitcoin is currently losing ground at one at $20,267, the weekly loss stands at -0.70%.
In recent days, the cryptocurrency repeatedly tested the 100-day MA, but the dynamic resistance could never be broken based on the daily closing price. Yesterday, a daily close below the 50 percent Fibo retracement of $20,446 even followed, opening the door for a test of the $20,000 psychological mark.
Support is bolstered by the close proximity of the 38.2 percent Fibo retracement of $19,914. If this zone is permanently crossed, the market is likely to fall towards the 23.6% Fibo retracement of $19,255.
The short-term technical outlook will only brighten if bitcoin manages to sustainably break above the 50 percent Fibo retracement and the 100-day MA. Gains towards the 78.6% Fibo retracement of $21,736 are possible then.
By Marco Oehrl