Key points:
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Compression of Bitcoin prices and Bollinger strips suggest that the beach expansion will occur soon.
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The early weakness of this week’s prices is probably the result of risk reduction before Wednesday FOMC and an update of the White House on its cryptography policy and its Bitcoin strategic reserve.
Bitcoin (BTC) continued to negotiate itself in the range of $ 117,000 to $ 120,000 on Tuesday, and it seems to be evident for a daily fence below $ 118,000. Some analysts have requested that the BTC retains the underlying support from $ 114,000 to $ 110,000, and although the techniques support such a decision, the minutes of the FOMC on Wednesday and a long-awaited white house report on American crypto policy and a strategic bitcoin reserve could reverse the downward trend.
The report is expected to reveal the exact number of bitcoin currently owned by the US government, and merchants hope that President Trump will take other measures to promulgate an official Bitcoin Strategic Reserve.
In addition to the Fed comments, quarterly profits for Meta Platforms, Ford, Robinhood and Microsoft are published on Wednesday, as well as US economic data on non -enlarged payroll, the purchasing managers (PMI), GDP, consumers’ feeling and ISM report on manufacturing and services.
The president of the federal reserve Jerome Powell should also speak, following the decision of the Fed on interest rates. Currently, the Fedwatch metric of the CME group shows that the Fed Feds funds are prices in a 98% chance that the central bank leaves unchanged rates in the range of 4.25% to 4.5%. Despite the intensification of President Trump’s pressure to immediately reduce the rates, Powell seems determined to keep the course and leave the Fed with the possibility of hiking or rates reduction on the basis of economic data.
As was the case in the previous days of negotiations before the FOMC, cryptographic traders seem to have a risk reduction and most of the great capitalization tokens have been sold today. TRDR data show that overall open interests in Bitcoin fall to $ 49.58 billion, compared to $ 50.58 billion in the opening bell of Wall Street. Long liquidations in the future market has accelerated the sale, and the data from Coringlass show $ 173.8 million in Magin of long called in the last 12 hours.
In relation: Bitcoin Bulls aim to chase liquidity at $ 122,000, but the seasonality of the T3 could block rashes
Will good news will trigger an escape?
In the past three weeks, the Bitcoin price has experienced almost 45% reduction in intra -day volatility, because its low -range daily range has shrunk at $ 2,300, compared to $ 4,200 on July 14. This price compression, although typical for periods of consolidation, tends to stop with a solid directional decision, and in this case, FOMC minutes which consist with the markets, the information on the brands and may for the increase.
Bollinger strips are also almost pinched at a closure, strengthening the compression of Bitcoin prices and the extension of the brewing range.
This article does not contain investment advice or recommendations. Each investment and negotiation movement involves risks and readers should conduct their own research when they make a decision.