© Reuters
Investing.com – The price may have rallied more than 5% in the past 24 hours, but it’s still sitting below the psychologically important $20,000 mark ahead of tomorrow’s decision.
The central bank is widely expected to raise its 0.75%. However, some market participants are also betting on a 1% rise in interest rates. They are based on the latest , which was higher than expected.
If the Fed were to decide on such a rate hike, it would weigh on risky assets like stocks and cryptocurrencies.
That doesn’t stop Michael Saylor, a cryptocurrency advocate and chairman of the board of MicroStrategy (NASDAQ:), from stating that BTC will benefit from the Ethereum blockchain merger.
According to him, only “proof-of-work” blockchains have a raison d’être, because they are the only ones to serve as a true store of value. moved from proof-of-work to proof-of-stake, making it no longer an alternative to bitcoin, as Saylor made it clear shortly after the merger:
“There is no other alternative to bitcoin”
MicroStrategy owns nearly 130,000 bitcoins and recently filed a request with the US Securities Commission (SEC) to sell additional shares worth $500 million. The proceeds from the sale will be partly used to buy new bitcoins.
Saylor is convinced that “many people around the world need bitcoin”, which is why he maintains his strategic purchases.
Technical thresholds to watch on Bitcoin
Bitcoin dipped below support at the 78.6% Fibo retracement of $19,251 yesterday, to hit $18,277, its lowest level since June 18.
But then a considerable recovery started, even allowing the day to close above the 78.6% Fibo retracement. Although a low was reached on the daily chart, the RSI formed a higher low, which resulted in a positive divergence (green lines). This may lead to an extension of yesterday’s bounce.
The next target would be the psychological level of $20,000, followed by resistance at the 61.8% Fibo retracement at $20,523. Above this, the room for further gains towards the 50 percent Fibo retracement of $21.417 would increase.
If the bulls, however, fail to sustainably defend the 78.6 percent Fibo retracement, expect a test of yesterday’s low. Below that, the focus would shift to the cycle low of $17,630.
By Marco Oehrl