Bitcoin (BTC) consolidated its recent gains on Oct. 27, as the highest levels in six weeks gave way to a slightly flat move.
Bitcoin impresses with its stability in GDP printing
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair hovering around $20,500 on Bitstamp after hitting local highs of $21,012 the previous day.
The largest cryptocurrency was in line with US stocks at the open on Wall Street, with the S&P 500 flat and the Nasdaq Composite Index down about 1% at press time.
For its part, the US dollar index (DXY) began to recover the day’s losses, providing a headwind to risky assets, absent for much of the week. DXY had hit its lowest levels since mid-September.
Pending an interest rate decision by the Federal Reserve, GDP data showed a rebound in the US economy in the third quarter.
“This digit [del PIB] weaker in terms of signaling the future strength of the economy than it was last, even if the headline was positive,” Eric Winograd, director of developed markets economics research at AllianceBernstein, told the Financial Times.
In Europe, the European Central Bank (ECB) raised interest rates by 0.75%, as anticipated.
“Today is a great day as the ECB presents its policy and US GDP figures,” summed up Michaël van de Poppe, founder and CEP of trading company Eight.
“Honestly, Bitcoin is still quiet at these levels, I would have expected a bigger correction since the last rally.”
The latest data from CME Group’s FedWatch tool puts the odds of the Fed re-announcing a 0.75% hike at 90.8% on the day.
A potential drop to $14,000 is still on the horizon
Analyzing the weekly chart of the BTC/USD pair, popular trader Rekt Capital highlighted the area just below $22,000 as an important area to rally to should the uptrend continue.
“BTC is slowly approaching the red resistance zone,” he wrote in a update on October 26.
Fellow analyst Il Capo de Crypto, meanwhile, said that the $21,500 mark would have to form the basis for consolidation if the bulls want to see a $23,000 price materialize.
His “main scenario” remained a pullback to fresh lows for the BTC/USD pair, potentially falling as low as the $14,000 level.
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