Bitcoin (BTC) remained lower on Nov. 3 as the fallout from the Federal Reserve interest rate hike subsided.
Trading range forms with the $20,000 level in the center
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair hovering just above $20,000 on the day.
The pair had seen sudden volatility when the Fed rose 0.75%, with false moves up and down causing liquidations for both long and short positions.
Cross-cryptocurrency settlements for the past 24 hours at press time stood at $165 million, data from Coinglass confirms.
In the end, bitcoin ended slightly below its pre-Fed level, a zone that continued to hold on the day as analysts waited for further signs.
For popular Twitter Crypto trader Tony, there was no need to adjust an existing forecast that implied a resumption of short-term declines.
“My main bias has not changed as I expect more consolidation and one more drop to produce a spring-like move to start the uptrend”, said to his followers on the day.
Data from tracking the resource material indicators highlighted potential support and resistance zones using Binance order book trades.
The $19,000 and $21,000 levels were in the sights of analyst Maartunn, a contributor to on-chain analytics platform CryptoQuant.
“Two groups of orders are added at $19,000 and $21,000. These are placed around the FOMC,” he pointed.
“Will this be the new trading range?”
DXY hints at bad news for risk assets
Meanwhile, trader John Wick expressed caution about the US dollar’s increasing strength following the rate hike.
Loading charts of the US Dollar Index (DXY), he warned that the impact of the dollar gaining ground would be felt across all risk assets.
“The first chart is the dollar armed with a wrecking ball. Bouncing off recent lows, targeting the top of the uptrend channel, just like I said it would after we see another rally.” wrote.
“This will put pressure on all asset prices, including BTC. Notice how the RSI remains bullish above the midline.”
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