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Bitcoin price remained in a narrow range on Wednesday as investors focused on the developments in the energy market and the rising ETF inflows. BTC was trading at $80,635, inside a range where it has been at in the past few weeks. It remains over $7,000 below the highest point this month.
Bitcoin Steady as Crude Oil Prices Jump
BTC remained in a narrow range as investors focused on the ongoing performance of the energy market. Brent, the global benchmark for oil, jumped to $115, while the West Texas Intermediate (WTI) rose to $102.
Oil prices rose as investors focused on the Israeli election and its implications for the global markets. Analysts now expect that Benjamin Netanyahu and other opposition parties will form the next government.
As a result, there is a likelihood that the US and Israel will restart their war against Iran, possibly next week when the US midterm elections end. Such a move will likely push oil prices higher as Iran has threatened further attacks against key energy targets in the region.
Federal Reserve to Deliver its Interest Rate Decision
The rising oil prices are important for Bitcoin because of the implications for the Federal Reserve. Higher oil prices lead to steady inflation, which, usually pushes the Federal Reserve to hike interest rates. The Fed has already hiked interest rates once this year.
Analysts expect the Fed will leave interest rates unchanged when it concludes its two-day meeting today. If this happens, it will leave rates unchanged between 3.75% and 4%.
The bank will leave rates unchanged because of the recent macro data. These numbers showed that the headline consumer inflation rate rose 3.7% in September, moving further away from the Federal Reserve’s target of 2.0%.
A hawkish Federal Reserve interest rate decision will be bearish for Bitcoin because it will likely push US bond yields higher. Bitcoin will benefit if the bank maintains a dovish outlook.
Spot Bitcoin ETF Inflows Have Resumed
Bitcoin has steadied as investors continue buying BTC ETFs. Data compiled by SoSoValue shows that these funds have added assets this week. They added $175 million in inflows on October 27 after adding another $110 million on Monday. These funds have now had outflows of just $26 million this month. In total, they have added over $6 billion in assets in the last four months.
Higher Bitcoin inflows are bullish for the coin because they mean that retail and institutional investors are aggressively buying the coin despite the ongoing geopolitical risks.
More data shows that Bitcoin futures open interest have remained under pressure. The 24-hour open interest has dropped by over 2% to $53 bilion.
Bitcoin Price Prediction: Technical Analysis
The daily chart shows that the BTC price has bounced back in the past few months. It bottomed at $57,724 in July to a high of $87,365 in September. Since then, Bitcoin has remained inside a narrow range as it found substantial support above the important support level of $80,000.
On the positive side for Bitcoin, it has formed a bullish flag pattern, which is made up of a vertical line and a descending channel. This pattern is usually a continuation sign in technical analysis.
Bitcoin has also remained above the 200-day moving average. Therefore, the coin will likely continue rising as bulls target the key resistance level of 87,365. A move above that level will raise the possibility of the coin soaring to $90,000 and possibly $100,000.
