The Bitcoin price prediction for November 2 remains neutral, as it trades in a narrow range of $20,300 to $20,800. The market is anticipating the US FOMC and Federal Reserve interest rate decision later today.

The Federal Open Market Committee’s (FOMC) and the Federal Reserve’s (Fed) interest rate decision is the main event in the markets today. According to market speculation, the Federal Reserve will increase interest rates by 75 basis points (bp). An important development will be if the hawks’ emphasis on core inflation momentum suggests a fifth 75bp rise in December.

Despite two consecutive quarters of declining GDP, the economy has returned to growth, and job creation is accelerating; the number of job openings in the United States is currently greater than the number of unemployed Americans by a factor of four. This has led many to predict that the Federal Open Market Committee (FOMC) will adopt a fourth consecutive 75bp rate hike.

Record High US Inflation Signals Hawkish FOMC

The Federal Open Market Committee, the central bank, is widely expected to raise interest rates today for the fourth time in a row, by 0.75 percentage points, due to inflation’s record high. Moreover, in December, investors will be watching for signals that the Fed plans to slow the rate at which it is increasing interest rates.

Futures markets are projecting a 49% chance of a 0.75% point hike and a 44% chance of a smaller increase of 0.5% points at the December meeting. If Tuesday’s employment report holds true, it could lower the likelihood of a smaller increase in December. Yet, interest rate forecasts on the futures market showed no movement on Tuesday from the previous day.

Bitcoin Price Prediction – Can BTC Rally Hard into FOMC Meeting and Break $21k?

The 24-hour trade volume for Bitcoin is $38 billion at the current price of $20,488. The absence of volatility in the market before today’s FOMC led to a nearly 0.5% drop in Bitcoin. The BTC/USD pair has risen by almost 1% in the last week. The current live market cap for all cryptocurrencies on CoinMarketCap is $392 billion.

The BTC/USD pair is trading in a narrow upward channel between $20,300 and $20,700 in the 4-hour time frame. Bitcoin is in a bullish trend, as indicated by candles closing above the 50-day moving average, providing support near the $20,400 level.

Bitcoin Price Chart – Source: Tradingview

There has been a slight correction to an upward trend, as indicated by the RSI and MACD, which both remain bearish. Therefore, if the price breaks below the $20,300 support level, the selling trend might continue to the subsequent support level of $19,950, and a rise in demand for Bitcoin might push its price above the $20,800-$21,000 resistance area. When BTC breaks above $21,450, it may reach a new weekly high of $21,800.