ForexMinute.com – Last 24 hours in the cryptocurrency market saw Bitcoin approaching towards another bottom. This price behavior further affected the altcoins, with Darkcoin, Dogecoin, NXT and Peercoin falling massively due to strong selling pressure. Surprisingly, only Litecoin managed to stay in an almost-stable mode
Rumors are that the yesterday’s Federal Reserve meeting had an adverse impact on the cryptocurrency market. Reportedly, the Fed has ended its QE programs after six years since its launch. Before the closing, the regulatory body has added $15 billion to its balance sheets, making its overall trading assets worth about $4.5 trillion.
This has raised quite a fury inside the markets, whether it is Bitcoin or Gold as the Feds have turned out to be that one dominated actor which can invest and reinvest its $4.5 trillion portfolio. The higher liquidity will simply give them chance to manipulate other markets as well, cryptocurrency being one of them. So as it turns out, the Federal Reserve is the biggest hodler of all time.
Other than this event, it is nothing but the prevailing bearish trends that impacted the Bitcoin and other altcoins’ values. The absence of demand was clearly visible in previous days, where the coins were going through sideways corrections. Normally under such consolidation periods, the market is poised to return to its previous rally and this is what exactly happened; Bitcoin dropped in the USD markets amidst huge selling pressure.
The pair opened at 352 during the 10/29 trading session, and dropped below 350 over the next few hours. It was supported at 347, after which its value rose a little, reaching 351. Against the expectations, this particular point transformed into the resistance level for yet another downtrend that followed, taking BTC/USD first to 338, and further lower to 333. The market eventually closed at 333.38 after falling 5.26% in its previous close.
As we entered the 10/30 trading session, the Bitcoin was still trading between the 330-335 levels. In the context of the last 6 months, the price never really went below after reaching such a point twice. The last bottom of 275 was solely caused by the bearwhale. Thus, we are expecting 330 to be the next support level for a hopeful uptrend.
If the price really consolidates within the 330-340 range then it might be possible that it attracts buyers this time, transforming the sentiment into bullish though for the short term. Here the next strong resistance is hopeful to be around 350. Ant attempt to break above will take the price to the 360-365 level. In case the bearish sentiment prevails at this point, we are seeing the price to fall within 300-310 range. This point can also act as a strong support for a long-term bullish scenario.
To contact the reporter of the story: Yashu Gola at firstname.lastname@example.org