Bitcoin and FED decision; Tomorrow 31st of July 2019, Federal Reserve Bank will announce the monetary policy for the rest of the year. the expectation is to reduce the rate by 0.25 to boost the economy and slow down the strong dollar. So how the decision will Bitcoin and other cryptocurrencies?
In case of Federal Reserve Bank – FED – reduce the rate by 0.25 point as part of new monetary policy then this will lead the investor to trade into the high-risk market especially with confident that FED will interfere to keep boosting the largest economy in the world.
Of course; the Stock market will be the biggest gainer, then Gold due to the lower price of the US dollar and we do believe Bitcoin and other cryptocurrencies will come to the third in the list.
Bitcoin on Weekly timeframe:
From the chart below, we can notice that Bitcoin is trying to re-test 100-week moving average.
So the price between $7300 and $7900 will be very strong support for BTC because:
- Weekly support line.
- 100 Moving average.
- Weekly Consolidation area.
Bitcoin on Daily timeframe:
The price of $8700 on the daily timeframe considers as the strongest support for BTCUSD for two reasons:
- Re-test the trend line which was strong resistance for Bitcoin path, BTC consumes about 30 days to break higher than it.
- 100 days moving average.
- Daily consolidation area.
Bitcoin on 4 hours timeframe:
- AB=CD harmonic pattern is completed.
- The pattern can also extend to hit $8700 where the extension of 130%.
We don’t recommend to enter the market with any short position.
We strongly recommend keeping buying Bitcoin on the depth.