Bitcoin Price Could Take Major Hit After Fed Rate Hike


Bitcoin has started falling again from the $19,500 resistance against the US Dollar. BTC is at risk of a sharp drop below $18,500 and $18,000.

  • Bitcoin started falling again after the Federal Reserve raised its rates to 3.25%.
  • The price is trading below $19,200 and the 100 hourly simple moving average.
  • There was a break below the major uptrend line with support near $19,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair must stay above $18,200 to avoid further losses in the near term.

Bitcoin price restarts falling

Bitcoin price attempted to gain strength above the $19,200 level. However, BTC failed to clear the file $19,500 resistance area I stayed in the drop zone.

As a result, there was a bearish reaction under the $19,000 level. The Fed’s rate hike from 2.75% to 3.25% led to a sharp drop. There was a break below the major uptrend line with support near $19,000 on the hourly chart of the BTC/USD pair.

Bitcoin price is now trading at less than $19,200 and Simple moving average per 100 hours. There was a retest of the $18,200 area and a low of $18,140. It is now consolidating losses above the $18,200 support area.

There was a move above the 23.6% Fib retracement level of the recent decline from the $19675 swing high to $18,140 low. On the upside, there is an immediate resistance near the $18.775 level. The next major resistance is near the $19,000 level.

The 50% Fib retracement level of the recent decline from the $19,675 swing high to $18,140 low is also near the $19,000 region. The main resistance is now forming near the $19,200 area and the 100 hourly simple moving average.

Bitcoin price

Source: BTCUSD on TradingView.com

A close above the $19,200 level may increase the chances of a move to $19,650. Any further gains could send the price towards the $20,000 resistance area.

More losses in bitcoin?

If Bitcoin fails to recover above $19,000, it may continue to decline. There is immediate support to the downside near the $18,200 region.

The next major support is near the $18,000 level. A clear move below $18,000 could set the pace for an even bigger decline. In the mentioned case, the price may test the $17,000 level.

Technical indicators:

Hourly MACD – The MACD is now losing its momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Key support levels – $18,200, followed by $18,000.

The main resistance levels are $19,000, $19,200 and $19,500.



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