Bitcoin finds support at the $26,000 level

Jan 09, 2024

- Bitcoin's 26,000 level is acting as support.- The cryptocurrency is trading between its blue channel, which is the neutral area.- The Bollinger bands are starting to squeeze (blue arrows). This suggests that an expansion in volatility is to be expected.- The RSI has slipped to the bearish side of 50, which may put pressure on the support at 26,000.- Bitcoin has been moving largely sideways since mid-March.- It did attempt to break the 30,000 level in April, but this failed, and the cryptocurrency has been treading water since.- Market participants will watch the Fed meeting in June for direction. The CME FedWatch Tool is currently pricing in a 78% probability for a pause here.- However, rate hikes may resume thereafter, with Fed official referring to a "skip" rather than a pause.

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Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.