Bitcoin price has been trading above the important level of $20,000 for the past two weeks. Bitcoin’s market capitalization has jumped more than 1% in the past 24 hours to $395.8 billion. However, the total volume of BTC traded in the past 24 hours has slipped by more than 16%. Bitcoin is the most valued digital cryptocurrency in the world.
Hiked Interest Rates
According to data by CoinMarketCap, the global crypto market capitalization has risen 1.84% in the last 24 hours. On the other hand, the total crypto market volume has posted an 18.10% decrease over the last day. Bitcoin’s dominance has also slipped over the day.
Bitcoin price has been hovering above the important level of $20,000 for the past two weeks, a sign that volatility in the market has begun to settle. Cryptocurrencies have recorded sharp declines this year as interest rates by the US Federal Reserve and as strengthening dollar heavily weighed on them.
On Wednesday, the Federal Reserve approved a fourth consecutive three-quarter point interest rate increase. The central bank raised its short-term borrowing rate by 0.75% to a target range of 3.75%-4%, the highest level since January 2008.
The Federal Reserve signaled a potential change in how it will approach monetary policy to bring down inflation. With Bitcoin price jumping to a weekly high of $20,802 before the commentary, a change in the sentiment sent BTC/USD lower before finding support above $20,000.
Investors are eyeing the US Nonfarm payrolls data for October scheduled for release later in the day. Analysts expect a decrease in the Nonfarm payrolls from 263,000 in the previous month to 200,000 in October. The US unemployment rate data is also scheduled for release later today. Analysts forecast a 0.1% increase to 3.6% in October.
Bitcoin Price Forecast
The 4-hour chart shows that the Bitcoin price has been hovering above the $20,000 level for the past two weeks. The BTC price is moving slightly above the 25-day and 50-day moving averages. Its Relative Strength Index (RSI) is currently at 45.
While the hiked interest rates and strengthening dollar continue to weigh on cryptocurrencies, the BTC price remains unpredictable. A break of the support and resistance between $18,000 and $22,000 will drive the price action either way.