Bitcoin, Ethereum, Dogecoin Swing In Mixed Trade Ahead Of Fed Interest Rate Decision: Analyst Sees 'Gorgeous' Pattern As Catalyst For Potential BTC Breakout

Benzinga – by Mehab Qureshi, Benzinga Staff Writer.

Major cryptocurrencies had a diverse performance on Tuesday, as investors were filled with optimism regarding the potential approval of Bitcoin exchange-traded funds (ETFs) in the United States.

What Happened: In October, the cryptocurrency market witnessed a significant boost in prices, putting an end to the prevailing monotony.

The leading cryptocurrency, BTC experienced its strongest monthly rally since January, as investors eagerly anticipated the approval of bitcoin ETFs in the United States.

During the first half of October, BTC remained steady around the $27,000 level. However, it surged more than 27% to reach a 17-month high of $35,000. Currently, it has settled just above $34,000 in anticipation of the Federal Reserve’s upcoming interest rate decision, with market participants largely expecting monetary policymakers to maintain the existing rates.

Bitcoin ETFs have the potential to have a significant impact on bitcoin due to their accessibility for the average investor, compared to purchasing the cryptocurrency itself or existing bitcoin investment products like the Grayscale Bitcoin Trust (GBTC), which currently manages $21 billion in assets.

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Top Gainer (24 Hour)

The global crypto market cap currently stands at $1.27 trillion, reflecting an increase of 0.32% in the past 24 hours.

Stock futures were marginally lower on Tuesday evening as Wall Street prepared for the Federal Reserve’s upcoming policy decision on interest rates, following a turbulent month. S&P 500 futures and Nasdaq 100 futures both declined by approximately 0.2%. The market’s movements are in anticipation of the Fed’s policy announcement, with expectations leaning towards the maintenance of steady rates.

The decision is scheduled for release at 2 p.m. ET, followed by a news conference with Chair Jerome Powell at 2:30 p.m. ET.

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Analyst Notes

Crypto analyst Michael Van De Poppe suggests that altcoins are experiencing an upward correction, while Bitcoin shows ongoing strength. “Another test of Bitcoin at $34,800. Breakout this time?”

#Altcoins correcting upwards, through which #Bitcoin also continues to show strength.

Another test of #Bitcoin at $34,800.

Breakout this time? pic.twitter.com/ry38OO3CFC

— Michaël van de Poppe (@CryptoMichNL) October 31, 2023

According to experienced crypto trader Tone Vays, Bitcoin is currently exhibiting a bullish pattern that has the potential to trigger a notable breakout. Vays shares in his latest strategy session that Bitcoin may experience a surge of approximately 10% in value based on its current price levels.

Vays highlights that Bitcoin is showing a bullish price pattern on the four-hour chart, with clear consolidation occurring within a defined channel ranging from around $34,858 to $33,701.

“[On the] four-hour [chart], as long as it doesn’t cross $33,500, it’s bullish. And we can now actually put in a channel. [This is a] gorgeous channel. We are now at the middle of the channel. Very likely we’re going to break out to the upside. Let’s see how long it lasts. More likely this is a breakout than a breakdown. It doesn’t have to break out. Technically, it can go either way,” he said.

Santiment, an on-chain data analytics firm, has observed that the trading crowd remained relatively neutral over the weekend. However, according to Santiment feed’s data, the current sentiment has once again shifted towards a bearish outlook. Interestingly, in previous instances where there has been a higher occurrence of negative keywords, it has coincided with the rise in values of cryptocurrencies like Bitcoin and other market caps.