Bitcoin (BTC/USD) Forecast: Bitcoin Bulls March Towards $50,000
Bitcoin (BTC/USD) Talking Points:
- Bitcoin prices rises above key Fibonacci resistance after US CPI (Consumer Price Index) favored speculative
- USD gains slightly after sliding against its major counterparts
- Price action stalls, can bulls reclaim the critical psychological level of $50,000?
With inflationary pressures on the rise, next week’s FOMC meeting minutes (22 September) could be a make or break for digital assets if the Federal Reserve hints at near-term tapering.
However, with softer CPI’s pushing out expectations of tapering, Bitcoin and Ethereum have managed to hold on to recent gains, at least for now.
Bitcoin (BTC/USD) Price Action
After the formation of a golden cross on the daily chart, Bitcoin prices have risen above the 23.6% Fibonacci retracement level of the June – September move at $47,000, in an effort to reclaim the key psychological level of $50,000 mark which remains as critical resistance for both the short and longer-term move.
With price action currently encapsulated between prominent levels, the ability to break above the key psychological level of $48,000 may give rise to further bullish momentum and a possible retest of $50,000 and a probable drive towards the next key Fibonacci resistance level of $51,734.
Bitcoin (BTC/USD) Daily Chart
--- Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.