Bitcoin price soars to over $ 47,000 daily ahead of the Fed’s anti-inflation decision
Bitcoin price has made up some of its losses yesterday and is trading above $ 48,000. However, the optimism could be short-lived as trading volumes remain low. Trading volume on the major centralized exchanges has decreased from the previous day, reflecting the cautious assessment of traders. At the time of writing, BTC is changing hands at $ 48,137.
BTC / USD 4-hour chart | Source: TradingView
Bitcoin’s narrow price range could extend into the trading day
BTC is holding steady around $ 47,000 support as oversold signals appear on the chart. This means that short-term buyers are likely to remain active during the Asian trading day, although the upside seems limited at $ 50,000.
In the past two weeks the trading band has narrowed and the price momentum has subsided. Usually trading volume decreases as the price moves sideways until a decisive breakout or breakout occurs.
The Federal Reserve is expected to announce its decision on Wednesday whether or not to move faster in easing bond purchases and signal whether or not it will start hike rates next year. Equity markets prolonged losses on Monday as investors watched the Fed’s upcoming decision.
BTC / USD 1-day chart | Source: TradingView
For the first time since July, the daily chart showed signs of downward exhaustion before the price rallied. These signals have yet to be confirmed, however, mainly because several oversold stocks have not resulted in a significant uptrend in the past two weeks.
For now, the medium-term uptrend remains weak as the 100-period moving average drops on the 4-hour chart. There is also strong resistance that the sellers could keep in control.
Ether is also up slightly but remains below $ 4,000 at press time. It led the last week at 22.32% of healthy exchange volume – with a lot of interest and influx from users due to the breakout in the ETH / BTC pair and all of ETH activity at the end. Dogecoin, meanwhile, remains the victorious altcoin of the day after Tesla CEO Elon Musk said the electric car maker will accept DOGE as payment for its goods, such as Bitcoin news reported.
The total capitalization of the crypto market is $ 2.185 trillion and the dominance of bitcoin is 41.6%.
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