The Federal Reserve will announce its interest rate decision today, and ahead of it bitcoin has managed to regain certain momentum over USD, having resided at the edge of $9,400 area recently. Investors from all around the world are waiting for the US rate cut which is likely to provide support to bitcoin.

Bitcoin and other cryptocurrencies have been facing a bout of choppy trading as of late that has led bitcoin's price into a key trading range that will likely set the tone for the overall crypto trends in the coming days and weeks. Moreover, bitcoin's fundamentals appear to be building strength, as the cryptocurrency's hash rate has now reached a fresh all-time high which may correlate with positive price action in the immediate future. Although it is unclear for now as to whether or not this bullish fundamental factor will be enough to propel bitcoin's price higher, the upward or downward breaks are likely to determine the market trend in the nearest future.

Additionally, bitcoin and other digital currencies are finally entering the mainstream political discourse. The launch of Facebook's Libra lit somewhat a fire to address the issues that the Silicon Valley-backed cryptocurrency could bring. US Secretary of the Treasury Steven Mnuchin echoed Trump's concerns in his own comments. Mnuchin claimed that he did not believe USD to be an asset for criminals. He remarked that cryptocurrencies should be subject to more stringent regulations to deter illicit activity.

On the other hand, the US ADP non-farm employment change report is going to be published today. The number of jobs is expected to increase to 150k from the previous figure of 102k, while the employment cost Index is expected to remain unchanged at 0.7%. Ahead of the NFP on Friday which is expected to have a dovish result with a decrease to 163k from the previous figure of 224k, today the Federal Reserve is expected to cut its rate to 2.25% from the previous value of 2.50%.

As of the current scenario, USD, having dovish bias as the interest rate cut is highly probable today, is likely to lose ground against bitcoin which is expected regain momentum and push above $10,000 area. However, certain spikes and increased volatility may be observed along the way.

TECHNICAL OVERVIEW:

The price has bounced off the $9,400 area with a daily close recently which is currently being carried by the dynamic levels like 20 EMA, Tenkan and Kijun line as support along the way. The price has breached above $9,500 and is heading towards $10,000 area. However, the Bearish Continuous Divergence is evolving along the way, so the price is expected to retrace before breaking above $10,000 area with a daily close in the coming days. As the price remains above $9,000 area with a daily close, the bullish bias is expected to continue.

TECHNICAL LEVELS:

SUPPORT- 9,000, 9,400, 9,500

RESISTANCE- 10,000, 10,500, 11,000, 11,500, 12,000

CURRENT BIAS- Bullish

MOMENTUM- Volatile