Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Bitcoin price steady around $40,000, Fed rate decision in focus

Cryptocurrency NewsJun 16, 2021 12:01
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Samuel Indyk

Investing.com – The price of Bitcoin was hovering around the $40,000 level on Wednesday after failing to extend above $41,000 during Tuesday’s trading session.

The world’s largest cryptocurrency had a promising start to the week following an intervention by Tesla (NASDAQ:TSLA) CEO Elon Musk, who said that the electric vehicle company would resume accepting Bitcoin once there is confirmation of reasonable clean energy usage by miners.

Bitcoin received further upside impetus after billionaire fund manager Paul Tudor Jones said he likes Bitcoin as a portfolio diversifier.

After the great start to the week, Bitcoin has traded in a relatively narrow range over the last two trading days and appears to be magnetised to the $40,000 level.

On Tuesday, the price briefly traded above $41,000 but some key technical resistance is in play if Bitcoin pushes higher. The next key level to look out for would be the 200 Day Moving Average (DMA) which sits around $42,700 and a break above that would bring the 50DMA into play at around $44,000.

However, what will concern some traders is that those two levels are continuing to converge and the formation of a ‘Death Cross’ – when the 50DMA moves below the 200DMA – is on the horizon. Historically, a ‘Death Cross’ represents a sell signal amid a breakdown of momentum to the upside.

Fed rate decision

The next potential catalyst for a move could be today’s Federal Reserve interest rate decision.

“Heading into the FOMC, Bitcoin could see limited downward pressure if a less dovish Fed sends the dollar bouncing back.,” OANDA Senior Market Analyst Edward Moya said in an emailed note. “Post any Fed driven weakness, Bitcoin should find the $42,500 as the next key resistance level.”

At 11:53BST, the price of Bitcoin was trading around $39,760.

Bitcoin price steady around $40,000, Fed rate decision in focus
 

Related Articles

Is Bitcoin (BTC) Able to Break Out Above $40,500?
Is Bitcoin (BTC) Able to Break Out Above $40,500? By BeInCrypto - Jul 30, 2021

Bitcoin (BTC) made another attempt at breaking out above the $40,500 resistance area yesterday. However, this push was unsuccessful. BTC is still consolidating below this area,...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Saad Gujjar
Saad Gujjar Jun 16, 2021 15:37
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nice
Oc Masai
Oc Masai Jun 16, 2021 14:56
Saved. See Saved Items.
This comment has already been saved in your Saved Items
forward growing up to 50k coming soon.
Tsog Ochir
Tsog Ochir Jun 16, 2021 14:04
Saved. See Saved Items.
This comment has already been saved in your Saved Items
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email