3 Experts Take On The Bitcoin Price, Will $19,000 Hold Or Break?

Bitcoin price is moving sideways on lower time frames after being rejected north of $20,000. The number one cryptocurrency by market capitalization has been benefiting from the bullish momentum of the Ethereum “consolidation” but with that factor gone, the bears seem to be back in control.

At the time of writing, Bitcoin price is trading at $19,200 with a 14% loss over the past week and a sideways movement in the last 24 hours. The cryptocurrency crashed below a critical support area around $18,500 over the weekend, which provided bearish arguments with fresh ammunition to predict a fresh annual decline.

BTC price is moving sideways on the 4 hour chart. Source: bTCUSDT Tradingview

The last line of defense for the bitcoin price?

Bitcoin price has been on a downtrend since late 2021 when it reached a new all-time high of $69,000. In the ensuing months, Bitcoin lost more than 80% of its value and plunged to an annual low of $17,600.

The cryptocurrency rebounded from those lower levels to form a short-term bottom around $18,600. In recent days, the price of BTC fell to $18,200 which could indicate that the bears have amassed enough momentum to push the price to yearly lows and possibly new lows below $17,000.

In the post-consolidation crypto market, macro factors appear to exert the greatest influence in the emerging asset class and traditional financial markets. Bitcoin has shown a high correlation with the major stock indices since the beginning of the bearish price movement.

According to analyst Josh Rager, the S&P 500 “wants a dip” and could drag the price of bitcoin with it. The cryptocurrency is in a critical support area, as we mentioned, and a break below its current levels could open the door to a new downside. rager recommended Traders stay stuck in USD as the market decides the direction:

This is the stock chart, it has rejected the level above and looks like it wants a downside. BTC is hovering at the support around $18K-$19K for the fifth time. It doesn’t look good at the moment but we may recover again… I am currently stable and will keep an eye on this.

Bitcoin BTC BTCUSDT Chart 1
The S&P 500 is moving to important support. Source: Josh Rager via Twitter

The US Federal Reserve is preparing to influence the price of Bitcoin

In lower time frames, the market appears to gravitate towards pools of liquidity created by leverage traders, according to Justin Bennett. There was more than $1 billion worth of bitcoin long betting around $18,850 which appears to be the main support for the cryptocurrency’s current price action.

This status quo appears to be on the right track for turmoil as the US Federal Reserve will hold its Federal Open Market Committee (FOMC) meeting tomorrow. In this report, the financial institution will disclose its position on the current inflation and a possible hike in the interest rate above 75 basis points.

Economist Alex Krueger is Aims Possible short-term downward price movement followed by more sideways movement if the Fed remains within market expectations. If there are surprises, and the financial institution rises above 100 basis points, the cryptocurrency market may react to the downside.

Leave a Comment

Your email address will not be published.