Bitcoin (BTC) is still attempting to avoid a slip below the $20,000 level after the position was threatened in the wake of the Federal Reserve raising interest rates. With the asset trading in the $19,000-$20,000 range for weeks, the general crypto community is looking for a price bottom to usher in a bear market exit.
Amid the gloomy macro backdrop of high inflation and rising interest rates, the crypto community continues to express optimism that the flagship cryptocurrency will rally in the coming days and offer a foundation for a bull run.
In particular, the CoinMarketCap crypto community has projected that Bitcoin will trade at an average price of $21,451 by the end of November 2022, according to data obtained by Finbold on November 4.
The prediction represents a growth of about 4.22% from the asset price at the time of publication. Notably, the projection is an outcome of 20,038 votes by community members using the price estimate feature.
Bitcoin’s continued consolidation
It is worth pointing out that the prediction aligns with Bitcoin’s price movement in recent weeks, with the asset increasingly consolidating around the $20,000 level. Interestingly, the community prediction has surpassed the $21,000 mark, a position considered instrumental for Bitcoin in its quest to exit the bear market.
Notably, in the last week of October, Bitcoin established a short-term rally that appeared to push the asset past $21,000 before being weighed down by the Fed’s latest policy.
Bitcoin technical analysis
From a technical perspective, there are positive indicators for Bitcoin. A technical analysis summary shows that a majority are for buying at 12. Moving averages are dominated by ‘Buy’ at ten, while oscillators remain neutral at eight.
Bitcoin technical analysis.
What next for Bitcoin?
At the moment, Bitcoin is looking for several indicators likely to push the asset to new levels. For instance, the upcoming job report will offer a glimpse of the state of the economy.
In this case, if the jobs data is strong, risk assets like Bitcoin could move lower since it would indicate the Fed might need to continue tightening to control the skyrocketing inflation.
Indeed, a Finbold report indicated a general sentiment that the market will rise, considering most investors are increasingly buying in the dip. Notably, the current bear market differs from the previous ones, considering the high accumulation level.
Furthermore, onchain data indicates that exchange inflow for stablecoin transactions hit an all-time high, a bullish sentiment for Bitcoin.
In the meantime, Bitcoin was trading at $20,600 by press time, recording gains of 1.5% in the last 24 hours.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.