Bitcoin price (BTCUSD) remains deeply in the offensive at the start of the month. The price is trading at $11,237, which is above the important support level of $10,000 but a bit lower than last week’s high of $12,108. The pair is slightly above the day’s low of $10,912. Other cryptocurrencies are also doing well. Ethereum price (ETHUSD) is up by 3% in the past 24 hours while Ripple price (XRPUSD) is up by more than 6%.
Fed and Washington policies supportive of Bitcoin price
Recent policies by the Federal Reserve and Washington politicians has been increasingly supportive of Bitcoin price and other risk assets like gold and silver. For example, the Fed has left interest rates at an historic lows. Interestingly, the Fed has also been printing tons of money. Indeed, a recent report showed that the bank has printed so much money in the past three months than it did in more than 2 centuries.
And this trend is likely to continue as Washington politicians continue to debate an additional stimulus. This week, as the unemployment funds expire, the politicians will likely pass an additional $1 trillion package. All these measures are supportive of Bitcoin price (BTCUSD) because they debase the US dollar. At the same time, as all this money comes to the system, there are fears of inflation in the US. Consider the statement below by Peter Schiff.
Meanwhile, Bitcoin price is likely to continue rising ahead of ETH 2.0 launch tomorrow. As we have written before, this is going to be the biggest upgrade of the Ethereum’s operating system. Therefore, since BTC and ETH tend to move in the same direction, there is a possibility that the price will continue rising.
Bitcoin price technical outlook
Bitcoin price has been rising for the past two consecutive weeks. On the weekly chart, the price is between the 38.2% and 50% Fibonacci retracement levels. It is also above the 50-day and 100-day exponential moving averages while the RSI has been rising. It is currently at 66, which is below the overbought level of 70.
Therefore, it signals that the upward trend is likely to continue climbing as bulls aim for the 50% retracement at $12,436 and next to $14,000. On the flip side, a move below $10,000 will invalidate this trend.