Bitcoin consolidates at $19,500 and aims for $20,000
The cryptocurrency market continues the recovery started in the last hours of Thursday's session after a worse-than-consensus-expected U.S. CPI reading. Bitcoin (BTC) seems to have managed to consolidate at $19,500 and is up 1.2% at the moment ($19,600), while Ethereum (ETH) is rebounding nearly 3% (+2.74%, $1,322) after hitting lows not seen in three months.
In general, digital assets have posted gains in the last 24 hours, especially ADA (Cardano) and SOL (Solana), as they made gains in the region of 5%. Meanwhile, Binance Coin (BNB) is up 3%, while Polkadot (POL) is up 5% and Ripple (XRP) and Polygon (MATIC) are posting gains of more than 9%. Meanwhile, meme stocks such as Dogecoin and Shiba Inu are up more than 4% in the last day, although they are currently down more than 5%.
Cryptocurrency markets plunged on Thursday after the United States reported a higher-than-expected CPI for September. The world's leading cryptocurrency seems to have stabilized after marking lows of the last three weeks and analysts are expecting a 'rally' to break above the psychological level of $20,000.
A clear move above this level could push the price higher, finding a next important resistance near the $20,450 level. If the price continues to move higher, analysts indicate that it could start climbing towards the $21,200 resistance zone. Still, failure to break above the $20,000 level could push Bitcoin back below the $19,500 level it seems to have consolidated at.
It is worth noting that CME's FedWatch tool indicates a 98.2% probability of a 75 basis point rate hike at the next Federal Open Market Committee (FOMC) meeting on November 2. On October 12, this indicator stood at 84.5%. Moreover, the probability of a 50 basis point rate hike is now 0%.
Investors' focus, experts point out, will be on preliminary data on US consumer sentiment and retail sales to be released today, on Friday, as they could contribute to increased volatility and price action in the cryptocurrency market.
Also, in recent hours Binance has launched a $500 million fund to provide loans to BTC miners after a difficult few months. Binance Pool, the company's mining service, will provide loans to miners, who will have to provide collateral, in the form of physical or digital assets, to obtain loans with a duration of between 18 and 24 months. Bitcoin miner revenue fell 16.2% to about $550.5 million last month, marking its fifth drop in the past six months, and the lowest total since November 2020, according to data from The Block Research.