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The vast majority of retail client accounts lose money when trading CFDs.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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What are the Next Resistance Levels for Bitcoin’s Price?

Bitcoin has rallied hard with a big move higher in stock markets. 

Central bank intervention was discussed at the lows, and stocks are now squeezing out short positions. 

BTCUSD – Weekly Chart

btcusd weekly chart

Bitcoin prices finally got above the $19,000 level, where weeks of weakness warned of further lows. The current price is $20,700 in BTC, and the world’s largest cryptocurrency by market cap is pointing higher. 

The first resistance for BTC was the $22k level seen in September. We then have more considerable resistance present at the $25,000 level. 

BTC is rallying with stocks after a preferred inflation indicator for the Federal Reserve suggested that the aggressive rate hike policy may soon end. 

The week ahead will bring the latest Federal Reserve interest rate move, and most traders expect an increase of 75 bps in the benchmark rate. However, a minor move may spur further gains in stocks and Bitcoin due to dovish implications for the December meeting. 

The significant event will be Fed Chair Jerome Powell’s press conference after the FOMC rate decision. 

“What will be interesting is whether Powell tries to say the front loading is over while they are looking to reach their terminal estimate,” Bloomberg reported, meaning where rates will stop. “Powell has to say terminal risks are to the upside, but a message of the Fed downsizing will be taken by the market as being dovish.” 

The central bank may indeed scale back hikes as the ISM manufacturing index is also set to be released and is forecast to ease to 50 in October. That level is the key between expansion and contraction. 

The current relief rally will take the fear away from the market. However, the situation in Ukraine is still a headwind for risk markets due to the US dollar.

Last Updated: 31/10/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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