Potential headwinds are gathering for risk assets as Bitcoin puts FOMC volatility behind it.
Bitcoin lingered lower on November. 3 because the aftermath of the federal reserve interest rate hike subsided.
Trading range forms with $20,000 at center
Markets pro and TradingView showed BTC/USD hovering simply above $20,000 on the day.
The pair had seen flash volatility as the Fed hiked 0.75%, with fakeout moves up and down triggering liquidations each long and short.
Cross-crypto liquidations for the past 24 hours at the time of writing totaled $165 million, knowledge from Coinglass confirms.
Bitcoin ultimately finished slightly less than its pre-Fed level, a region that continued to carry on the day as analysts expected fresh cues.
For popular Twitter trader Crypto Tony, there was no need to regulate an existing forecast involving downside resuming short term.
“My main bias has not modified as I expect more consolidation and one more drop to supply a spring like motion to starting motor the bull run,” he told followers on the day.
Data from observance resource Material Indicators highlighted potential support and resistance zones mistreatment trades from the Binance order book.
$19,000 and $21,000 were focussed for analyst Maartunn, a contributor to on-chain analytics platform CryptoQuant.
“Two order clusters are else at $19000 & $21000. These are placed around the FOMC,” he noted.
“Will this be the new trading range?”
DXY hints at bad news for risk assets
Fellow dealer John Wick, meanwhile, voiced caution over increasing U.S. dollar strength following the rate hike.
U.S. dollar index (DXY) 1-hour candle chart. Source: TradingViewUploading charts of the U.S. dollar index (DXY), he warned that the impact of the dollar gaining ground would be felt across risk assets.
“First chart is the wrecking ball weaponized dollar. Bouncing off recent lows, targeting the highest of the uptrend channel, just as I said it'd once we see another hike,” he wrote.
“This will pressure all asset prices including BTC. Notice how RSI staying bullish above midline.”
( William Suberg, Cointelegraph, 2022 )