YEREVAN (CoinChapter.com) — Bitcoin (BTC) price shows signs of consolidation after nearly hitting $36,000 for the first time in about eighteen months. In doing so, the cryptocurrency may correct toward $32,000 in the week ending Nov. 12, 2023.
Bitcoin struggled to continue its prevailing bullish momentum in the week ending Nov. 5. The cryptocurrency’s price rose by a modest 1.5% but remained unsure about pursuing a breakout above $36,000.
Key reasons include profit-taking by crypto miners. According to CryptoQuant, Bitcoin miners’ reserve has dropped by over 3,900 BTC (~$136 million) since Oct. 26. In other words, these whale entities have started securing profits in anticipation of a BTC price correction.
The Bitcoin gains last week further coincided with economic data and Federal Reserve commentary that suggested a decline in interest rates. Expectations of a rate hike pause until mid-2024 have served as a primary driver for the riskier markets, primarily as they reduce appetite for safer assets like bonds and the US dollar.
For instance, the yield on the benchmark 10-year US Treasury note dropped last week. In turn, the US dollar index (DXY), a barometer to measure the greenback’s strength against a pool of top foreign currencies, plunged 1.42% last week.
Bitcoin and the dollar share a long-term negative correlation with one another. A weaker dollar, thus, serves as a buying cue for crypto traders.
Meanwhile, key Bitcoin ETF news updates in the week ending Nov. 5 include:
This week, the focus will be on the following economic events:
These critical events can influence the Fed’s monetary policy decisions, especially considering the recent decision to maintain interest rates, pointing towards a peak in the tightening cycle. Bitcoin traders should focus on the outcomes to create long-term investment strategies.
From a technical standpoint, Bitcoin eyes a modest correction toward $32,000 this week. This level is near the lower trendline of a prevailing rising wedge channel, as shown below.
More cues for an imminent correction come from Bitcoin’s weekly relative strength index (RSI). The RSI is now above 71, an overbought region that typically prompts the price to drop, akin to what happened after April 2023.
Vanar Chain's ecosystem expansion efforts seem to have paid off, but the VANRY price still…
Ethereum Blockchain Heist - Two Brothers Charged NAIROBI (Coinchapter.com) - The Department of Justice has…
Chinese Police Bust Underground USDT Stablecoin Users Chinese police in Sichuan province have busted an…
Andrew Tate Announces Bitcoin Investment Andrew Tate, the former kickboxer and controversial online personality, ignited…
BlockTower Capital Attacked by Hackers NAIROBI (Coinchapter.com) - BlockTower Capital, a prominent crypto investment firm…
The world of online slot games is a fascinating blend of art, technology, and psychology.…