Bitcoin
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The leading cryptocurrency Bitcoin this month can either make a “dead cat” bounce or stay flat as it did earlier. Recall that the rebound of a “dead cat” in the slang of traders means a temporary short-term recovery of the asset price after a long fall.
If a bounce occurs, then the price of Bitcoin could reach $22,000, but then fall to $19,000, and possibly even lower. Much will depend on what decision the US FOMC makes today. A press conference following the meeting should be held at 21:30 Moscow time.
Investors expect the rate to rise by 75 basis points, which will not affect the market much. If the rate is raised by 100 basis points, then the price of Bitcoin could fall to $18,000.
What awaits Bitcoin in November: a sideways move or a dead cat bounce
It can be pointed out that now the cryptocurrency market is under strong pressure from financial regulators that are raising rates. Recall that on October 27, the ECB raised three key interest rates by 0.75 percentage points. From November 2, the base rate will rise to 2 percent, the rate on deposits – up to 1.5 percent, and on short-term loans – 2.25 percent. This is stated in the press release of the regulator.
Similar measures may be taken today by the US FOMC. The tough policy of financial regulators leads to the fact that investors prefer to leave cryptocurrencies and switch to US Treasury bonds. Therefore, we should not expect a significant increase in Bitcoin during this month. Even if there is a dead cat bounce, the price will rise to no more than $22,000 and then fall again.
Most likely, the cryptocurrency will move sideways around the level of $19,000 – $20,000. And this trend will continue throughout November.
Will Bitcoin be able to overcome the bearish trend in the near future
Probably not. The discount rate may be raised by the US Federal Reserve to 4.5 percent. The Chinese economy also has problems. Forecasts for Chinese GDP growth did not come true. The government in Beijing had expected growth to be around 6%, but this is unlikely to happen.
Due to the ongoing geopolitical tensions in Europe, high inflation, the world economy may again find itself in crisis next year. Therefore, in November and at the end of the year, Bitcoin will most likely trade within $20,000 with minor price fluctuations.
Author: Vadim Gruzdev, analyst Freedman Сlub Crypto News
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