Bitcoin resistance mounts pre-FOMC as Dogecoin sets 17-month BTC high
2022.11.01 11:04
Bitcoin (BTC) stayed motionless at the Nov. 1 Wall Street open as traders rooted for clues over a possible direction.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Hopes of a breakout remain despite BTC sell wall
Data from Cointelegraph Markets Pro and TradingView showed a narrow range in place for BTC/USD overnight, the day seeing local highs of $20,681 on Bitstamp.
Markets were keenly awaiting news from the United States Federal Reserve on interest rates, which is scheduled for 2:00 pm Eastern Time on Nov. 2.
Until then, it i a case of “wait and see,” while on-chain monitoring resource Material Indicators noted sell-orders already increasing.
“The binance order book is starting to look like a game of Tetris,” it summarized.
A chart showed resistance being added just below $30,000 at the Oct. 31 monthly close.
“If that $46M block at ~$30k drops into the active trading range, it’s going to hammer price down. To the contrary, if it gets lifted BTC should run,” Material Indicators continued.
“Signaling from the FED on Wednesday could be a catalyst.”
BTC/USD order book data (Binance). Source: Material Indicators/Twitter
Trader Crypto Tony, meanwhile, highlighted the potential for upside to reenter based on recent performance.
“Bulls stepped in at the right time to defend the support zone,” he tweeted alongside an illustrative chart.
“Now the question is do we get a pump up from here, or dip to take out the liquidity lows then pump.”
BTC/USD annotated chart. Source: Crypto Tony/Twitter
The monthly close came in at around $20,500 for Bitcoin, marking a modest increase over September and October’s gains of 5.6%, according to data from Coinglass.
BTC/USD monthly returns chart (screenshot). Source: Coinglass
DOGE divides with ongoing bull run
The main story focused on altcoins on the day as Bitcoin ranged.
Related: BTC price sees ‘double top’ before FOMC — 5 things to know in Bitcoin this week
Continuing a boost received courtesy of Tesla CEO Elon Musk, Dogecoin (DOGE) furthered gains on the day, reaching its highest since late April in U.S. dollar terms and highest since June 2021 priced in BTC.
“A test of $0.17 EQ level seems inevitable at this point,” Crypto Tony predicted in separate analysis.
“No doubt we will continue seeing more Doge tweets from the master himself Elon Musk.”
Others were less convinced, with fellow popular trader Anbessa cautioning on adding DOGE exposure at current levels.
“Caution, especially if you Fomo now & haven’t caught the whole move,” part of Twitter comments read.
DOGE/BTC 1-week candle chart (Binance). Source: TradingView
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