Bitcoin Surpasses $27,000: Fed Expected to Prolong Rate Pause a Week After Death Cross Formation
Bitcoin has witnessed an almost 8% surge since the emergence of the ominous-sounding "death cross" pattern on its daily price chart back on September 11th. This surge is concurrent with the perception among traders that the Federal Reserve will maintain the current borrowing costs throughout the remainder of the year.
The leading cryptocurrency, valued by market capitalization, surged to $27,170, marking its highest point since August 31st. This recent price movement highlights an 8% increase since the foreboding "death cross" pattern made its appearance on the daily price chart of the cryptocurrency earlier in the month.
Essentially, the "death cross" represents a bearish crossover of the 50-day simple moving average (SMA) falling below the 200-day moving average. It seems that this pattern may have caught sellers on the wrong side of the market, reaffirming its reputation as an unreliable standalone indicator.
Bitcoin's recent uptick coincides with the prediction derived from Fed funds futures, which indicate a 99% likelihood that the Federal Reserve will maintain current rates within the range of 5.25% to 5.5% during the upcoming Wednesday. Furthermore, the futures suggest a 69% probability of no action in November and a 58% probability of the same in December.