FX.co ★ Technical Analysis of BTC/USD for November 2, 2023

Crypto Industry News:

At the November meeting of the US Federal Reserve's Open Market Committee (FOMC), officials decided on another consecutive pause. This is another such move after the pause in September and June. Last time interest rates increased in the USA in July - by 25 points, to the levels of 5.25 and 5.50 percent.

Why this and not other Fed's decision? First, consumer inflation in the US appears to be subdued. In September it was 3.7%, which is the same as the month before. In turn, core inflation (which excludes energy, fuel and food prices), which is more important for the Fed, dropped to 4.1% from 4.3%. It is at its lowest level in two years, although still above the Fed's inflation target.

Does all this mean that the Fed will no longer raise interest rates? Not necessarily. Officials are still defending themselves against announcing the complete closure of the cycle.

"While the economy continues to show strength in terms of GDP growth, rising bond yields are causing some tightening in financial conditions. We believe it is too early for the Fed to completely close the door on further rate increases given the strong data, but now even greater the focus will be on how long the main interest rate will remain at its current level," said Daniel Bergvall, director of economic forecasts at SEB Research.

News coming from the USA had a positive impact on the bitcoin price. Currently, 1 BTC costs approximately USD 35,400. Importantly, the level of USD 35,000 was broken. Since yesterday and during the week, the price has increased by approximately 2%.

Technical Market Outlook:

The BTC/USD pair has made a new swing high at the level of $36,002 (at the time of writing the analysis) as the bulls are in control of the market despite the extremely overbought conditions on the H4 time frame chart. The intraday technical support is seen at $34,386 and the next target for bulls is seen at the level of $37,142. The momentum remains strong and positive, so after the pull-back for the last swing high is done, the up trend shall continue.

Weekly Pivot Points:

WR3 - $35,103

WR2 - $34,711

WR1 - $34,493

Weekly Pivot - $34,319

WS1 - $34,102

WS2 - $33,927

WS3 - $33,538

Trading Outlook:

The bulls broken above the gamechanging level located at $25,442, so now the mid-term outlook for BTC is bullish. The last pull-back has reached the 38% Fibonacci retracement and the market is ready to continue the up move. The next target for bulls is seen at the level of $37,142. As long as the level of 19,572 is not clearly violated, there is a chance for a long-term up trend to continue.