Bitcoin's Next Move: Here's What to Watch

In brief

• Bitcoin trades just below $83,000, above both the short-term and long-term moving price averages.
• Momentum is neutral, with room to run in either direction.
• Here's how the next price move could break, and why.

Crypto markets rebounded on Tuesday with a near 2% jump across the board, rising to $2.8 trillion total market capitalization, and Bitcoin once again testing key levels.

For traders and investors plotting their next moves, here’s what to watch:

The Crypto Fear & Greed Index, a 0-to-100 gauge of market mood, reads 51, a neutral reading between fear and greed, up three points from yesterday when it registered 49 points.

The macro backdrop is still tense. Brent crude oil trades near $110 a barrel amid attacks on tankers in the Strait of Hormuz, and expensive oil feeds inflation by raising the cost of fuel and goods. Higher inflation raises the odds that the Federal Reserve keeps rates high or raises them again, which pushes Treasury yields above 5%. Higher yields pull money out of risk assets like crypto, and the Fed next meets on October 27 and 28.

Bitcoin trades at just below $83,000 on the daily chart, holding above both of its key moving averages after a bounce from the $80,000 area. It bounced in the confluence of the average price of the last 50 days (also known as EMA50) and the natural support of its most recent bullish movement.