The cryptocurrency community is excited as Bitcoin and other digital assets continue their impressive ascent, fueled by optimism and the Fear of Missing Out (FOMO). All eyes are on major events unfolding this week, hoping for further price surges.
Upcoming Federal Reserve Decision
One of the pivotal events on the horizon is the meeting of the U.S. Federal Open Market Committee (FOMC) scheduled for October 31 and November 1. The committee faces a critical decision: whether to maintain the current interest rates, indicating a ‘pause,’ or if another increase is necessary.
Recent Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) data suggest a moderation of inflationary pressures. The CME FedWatch Tool indicates a staggering 96.2% chance that the Federal Reserve will keep interest rates steady, as the annual Core PCE, a crucial inflation measure for the Fed, has dropped to 3.7%.
Bitcoin’s Current Status
Shifting our focus to Bitcoin, we observe a positive trajectory as it surpasses the $34,400 resistance level, setting its sights on the $35,000 resistance area. However, momentum appears to be waning slightly. The cryptocurrency reached a peak of $35,008 but could not sustain the upward trend, experiencing a minor pullback.
Looking ahead, Bitcoin faces immediate resistance around the $34,700 mark. A successful breakthrough could lead to the next significant resistance at $35,100 or the upper trend line of the current channel. The critical $35,000 zone remains the ultimate challenge for a more substantial rally.
If Bitcoin encounters difficulties in surpassing the $34,700 resistance zone, a downward correction could ensue. As traders and investors closely monitor these critical levels, the forthcoming FOMC meeting will undoubtedly play a pivotal role in shaping Bitcoin’s next moves.
As of the time of writing, Bitcoin (BTC) is valued at $34,482.