After the much-anticipated FOMC interest decision, Bitcoin, the colloquial digital gold, and commodity safe havens like gold and silver seek footing after turbulence.
Markets are moving past policymakers’ decision to cut interest rates by a quarter percentage point to focus on other drivers, including earnings and geopolitics.
Sponsored
Sponsored
What Next for Bitcoin, Gold, and Silver After FOMC Interest Rate Decision?
BeInCrypto reported the Fed’s decision to cut interest rates by 25 basis points (bps), effectively ending its balance sheet reduction. The move, which aligned with economists’ expectations, has inspired momentum for Bitcoin, Gold, and Silver prices.
Bitcoin May Only Be Attractive To Buy Past $112,926
While policymakers’ decision to cut interest rates is bullish, Bitcoin may only be attractive to buy after crossing $112,926.
A decisive daily candlestick close above this level (the mean threshold or midline) of the supply zone between $111,281 and $114,453 would confirm that bulls have overpowered selling pressure from this order block.
If the Bitcoin price continues to hold above the ascending trendline, such a breach would be inevitable. This trendline has been a longstanding support level for the pioneer crypto since early April.
Bulls waiting for confirmation, however, should consider opening long positions above $114,553. Based on the volume profiles (blue horizontal bars), many bulls are waiting to interact with the BTC price above this level. After all, BTC’s Sharpe Ratio suggests a cycle toward a low-risk period.
The $116,014 level is also critical for the pioneer crypto. It is a support level that has turned resistance and continues to cap further upside. A breach and successful retest of this supplier congestion level could prime BTC price to $120,574.
Sponsored
Sponsored
Nevertheless, the Bitcoin price will have a shot at reclaiming its all-time high above $126,199 when it successfully breaks and closes above $123,917. This level is the midline of the supply zone between $123,094 and $124,630. Such a move would denote an 11.33% move above current levels.
Conversely, on-chain analyst Ali says the TD sequential signals an imminent sell-off for the Bitcoin price. If the Bitcoin price falls below the ascending trendline, the ensuing selling momentum could see it roll over. It could find immediate support at $106,081.
In a dire case, the downtrend could extend for BTC to collect sell-side liquidity around $102,000, where the October 10 trading session bottomed out.
The MACD (Moving Average Convergence Divergence) is in negative territory, suggesting momentum favors sellers. Similarly, the RSI position below 50 accentuates this outlook.
Sponsored
Sponsored
Until Gold Breaks $4,048, Bears Have the Say!
Gold is also attempting a recovery after the FOMC, with the RSI showing rising momentum. However, much remains on the balance because of the overhanging seller congestion levels.
The 9-day SMA (Simple Moving Average) continues to track gold from above at $3,975, limiting its upside potential.
The yellow horizontal bars (bearish volume profiles) also show many sellers waiting to book profits once the gold price reaches between $4,002 and $4,086.
However, a breakout may be imminent, as the gold price is filling up a symmetric triangle on the four-hour timeframe.
In this regard, traders looking to open short positions for the precious metal should consider a decisive candlestick close below $3,917, which could see the XAU price dip toward $3,800. Such a move would constitute a 5% drawdown below current levels.
Sponsored
Sponsored
This Pattern Could See Silver Price Rise to $51.34
Like Bitcoin and gold, silver is also staging a recovery on the one-hour timeframe. However, while it consolidates along an ascending trendline, the resistance level at $48.36 remains a crucial barricade.
The resultant technical formation is an ascending triangle, a bullish continuation pattern that could catapult the silver price 6.20% up to $51.34.
This target objective is determined by measuring the triangle’s height and superimposing it at the expected breakout point. To support this thesis, the bullish profiles (grey horizontal bars) show a large volume of bulls waiting to interact with XAG above the $43.36 roadblock.
Key entry points beyond $43.36 include $48.92 and $49.98, earmarked by the 61.8% and 50% Fibonacci retracement levels, respectively.
On the flipside, this bullish technical formation for the silver price could be invalidated if the price falls below $47.41, which coincides with the 78.6% Fibonacci retracement level. A candlestick close below this level on the one-hour timeframe could see XAG price drop toward $45.50, almost 5% below current levels.
