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Crypto

Today Bitcoin resumed its descent remaining in the zone of $18,000 - $20,000. This price zone has been tested as support over ten times during the last four months, and each time Bitcoin has held this level. However, with the Fed anticipated to announce the 5th interest rate hike this year at the conclusion of the FOMC meeting tomorrow, will this level of support remain unbroken?

At 8:30 AM ET, the U.S. Bureau of Labor released the consumer price index for the month of August. The report showed that inflation was still greatly elevated at 8.3% for all items over the last 12 months.

Anyone reading this I assume is already well aware of What the upcoming Ethereum 2.0 is and doesn’t need me to explain the details. This upgrade or more accurately hard-fork of the Ethereum blockchain has been widely anticipated for years and its delay was the most critiqued aspect for some time.

Bitcoin is having a bad start to the month of August with $20,000 appearing to have flipped to resistance. Following the weekend and Labor Day which contained tight volume and little volatility, Tuesday’s trading was decisive and to the downside. As of 5 PM, ET Bitcoin is trading at a loss of nearly $800 or 4.4% for the day.

Arguably the most significant level for BTC over the past 5 years is $20k. It was the top of the 2017 rally that brought Bitcoin into the mainstream spotlight, and it was the ceiling back in 2020, that when taken out in mid-December 2020 signaled the moonshot was underway breaching $60k in less than 3 months after cracking the elusive $20k.