- Summary:
- Bitcoin price looks poised to test resistance at the $8,000.00 handle. With the US GDP report and FOMC decision due today, can it rally?
After successfully clearing resistance at $7,380.00, the next ceiling for bitcoin price looks to be at $8,000.00. Aside from it being a psychological handle (market participants are known to react more around whole numbers), the 100 SMA and 200 SMA also coincide with it on the daily time frame.
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However, today’s is a big day for the US dollar. Our calendar lists two top-tier events scheduled later which could spark volatility on BTCUSD.
At 1:30 pm GMT, the advance GDP report is due. It is expected to show that the US economy contracted by 4.0% in Q1 2020. A better-than-expected figure could strengthen the USD and push BTCUSD lower. On the other hand, a disappointing report could weaken the dollar and help BTCUSD rally past $8,000.00.
Then at 7:00 pm GMT, the FOMC interest rate decision is due. There are no changes are expected on the Fed’s interest rates. However, market participants are keen on learning as to when the central bank would keep rates at record lows. The longer the Fed’s time frame, the more bearish the statement will be for the dollar. Alternatively, if the central bank suggests that they will not remain near 0.00% for long, the dollar could strengthen.
BTCUSD Outlook
On the 4-hour time frame, it can be seen that bitcoin price is trading inside an ascending channel. Should buyers dominate trading, we could see BTCUSD rally to the upper limit of the channel at $8,250.00. On the other hand, if the US GDP or FOMC turn out to be bullish for the dollar, the cryptocurrency could fall to support at $7,191.35.