Bitcoin fluctuates at $34k: Where will prices go?

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• Bitcoin consolidated recent recovery gains above $34.0k at press time. 
• Significant buy orders were at $33k; sell orders were placed at $35k and $40k. 

Bitcoin [BTC] entered a range formation on 25 October and consolidated gains above $34k. The range persisted ahead of the Fed decision on 1 November and could expose the king coin to slight price volatility. 

Read Bitcoin’s [BTC] Price Prediction 2023-24

A recent BTC price prediction projected a move to $36k due to open liquidity at $35.9k. The idea was yet to materialize at press time as BTC failed to cross above $35.2k. What can traders expect next week as the Fed decision looms?

Key BTC price levels to consider

Source: BTC/USDT on TradingView

The liquidity on the 12-hour chart was at $30.9k – $32.8k (white). Above it, a crucial overhead and a bearish order block formed in May 2022 stood at $38k-$40k (red). However, the immediate hurdle for bulls to clear was the recent and new high of $35.2k. 

Notably, over 99% of polled interest traders expected a Fed rate pause in November. So, BTC could witness a slight bounce. The overhead resistance to watch out for were $35.2k, $37.7k, and roadblock of $38k – $40k. 

But negative sentiment from an unlikely Fed rate hike could expose BTC to a downswing. The liquidity area of $30.9k – $32.8k (white) will be a crucial support in such a bearish scenario. 

The RSI (Relative Strength Index) and CMF (Chaikin Money Flow) readings were positive. It indicated that BTC witnessed massive buying pressure and capital inflows in the past few days. 

Buy orders at $33k; Key sell orders at $35k/$40k

Source: Mobchart (BTC buy and limit orders from Binance Exchange on 29 October)

Data from Mobchart indicated massive buying interest below $34k. So, BTC could attempt to defend the $34k psychological level in the next few days. Notably, over 300 BTCs buying order was placed at $33k on Binance Exchange at press time. 

On the sell side, $35k and $40k recorded significant sell limit orders. On the $35k level, 218 BTCs were up for sale on the Binance Exchange at press time. Interestingly, the $40k level saw 387 BTCs for sale too. 

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It meant that BTC’s move above $35k could face a challenge if more players offloaded their holdings at the level. 

At the same time, a move below $33k could be far-fetched given the massive demand interest. The level was within the liquidity on a chart, which reinforced it as a crucial demand level.