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Investing.com – The consolidation of recent days continued on Tuesday morning, with the market’s largest cryptocurrency moving towards $34,250, as traders cautiously await Wednesday evening’s Fed meeting.
On the other hand, continued hope for spot Bitcoin ETFs keeps the cryptocurrency from falling too far, as Bernstein analysts issued a note on Monday estimating that approval of spot BTC ETFs by January 10 is “a done deal.”
“The market has been waiting to see if (the Securities and Exchange Commission, or SEC) will appeal the Grayscale verdict. Now that the SEC has chosen not to appeal and has even actively responded by making changes/comments to the ETF applications, the likelihood of approval by the January 10 deadline appears very high,” reads the Bernstein Research note.
As for tomorrow’s Fed meeting, the central bank is expected to maintain a monetary status quo. However, investors are still factoring in a high probability that it will raise rates in December.
In this context, the statements and data that the Fed will share will be dissected in search of clues to refine expectations.
Technical thresholds to monitor on Bitcoin
From a graphical point of view, the immediate trend remains bullish in daily data.
Furthermore, we can see on the chart below that the 50-day MA crossed above the 200-day MA yesterday. This is a powerful bullish technical signal called a “golden cross”, which could justify a new upward leg for Bitcoin.
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On the other hand, the RSI indicator remains largely in the overbought zone, which implies a risk of correction.
Regarding the important thresholds, the threshold of $35,000 and the annual high of $35,175 form immediate resistance, while on the downside, the area of 33,500 is the first concrete support, before $33,000, then the area around $32,000.