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Bitcoin Price Still Advancing On The Eve Of Rates Hike

Last Updated May 18, 2023 4:44 AM
Venzen Khaosan
Last Updated May 18, 2023 4:44 AM

Bitcoin price action is awkward due to hesitancy and frequent profit taking. Yet, price has continued pushing higher all day and we look at the prospects going into tomorrow’s Fed Rate announcement.

This analysis is provided by xbt.social  with a 3-hour delay. Read the full analysis here . Not a member? Join now and receive a $29 discount using the code CCN29.

Bitcoin Price Analysis

Time of analysis: 14h30 UTC

BTCC 1-Hour Chart

a chart showing the price of bitcoin and the price of bitcoin

From the analysis pages of xbt.social, earlier today:

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The bitcoin price chart looks to be pushing higher despite tomorrow being a day best spent out of the market.

The trader’s objective is to get out of the market before a surprise forces him or her out. Of course, the market might fling to the upside and rally to an amazing new high, but this is not the probable outcome that makes us prefer a cautious approach.

The Fed has, in the past, disappointed market expectations, and also accidentally “leaked” information prior to an announcement. Being in the market with open positions exposes our account funds to unnecessary risk, so we’re looking for an exit.

xbt.social analysis identified a compelling buy signal in yesterday’s late-day chart. The trade has yielded profit and appears to have some additional upside in the tank.

Two overhead Fib lines imply possible price targets between 3100 and 3300 CNY in the BTCC chart and around $470 in the Bitstamp chart.

Keep an eye on RSI (second from top) which may diverge on any new high – remember that there is also the November top near 3300 CNY.

Summary

Unless the majority of bitcoin traders abandon the market wisdom to stay out of trades prior to major announcements, we’d expect price to consolidate prior to the Fed announcement at 19h00 UTC on Wednesday, and to jump once the market has processed the announcement content and implications.

Bitfinex Depth Chart and Buy/Sell Volume

a line graph showing the number of people in each country

Click here for the CCN.LA interactive bitcoin price chart.

What do readers think? Please comment below.

This analysis is provided by xbt.social  with a 3-hour delay. Read the full analysis here . Not a member? Join now and receive a $29 discount using the code CCN29.

Readers can follow Bitcoin price analysis updates every day on CCN.LA. A Global Economic Outlook report is published every Monday.

Disclaimer

The writer trades Bitcoin. Trade and Investment is risky. CCN.LA accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.

Bitcoin price charts from TradingView.
Image from Shutterstock.