Bitcoin (BTC)Crypto News

Bitcoin price bearish below $16,900 but indicators are suggesting otherwise

the Bitcoin-Price has been struggling below $17,000 for several weeks and recently fell below $16,900. This downward movement on the Bitcoin chart could be attributed to the recent Federal Open Market Committee (FOMC) minutes.

The minutes of the meeting show that the Federal Reserve System will hold interest rates higher for the foreseeable future.

This has obviously made waves through the market, prompting participants to react negatively. The asset’s technical outlook reflects a drop in accumulation, but the indicators for bitcoin price are still positive in the coming trading sessions. From the daily chart, it can be deduced that BTC will recover in the next few trading sessions.

Bitcoin continues to hold steady above the $16,600 price level. Currently, the asset’s price is consolidated, with the major altcoins following the same price action. In the past 24 hours, BTC slipped 0.6%. Bitcoin price is currently trading at a 76% discount to its all-time high traded by 2021. the market capitalization Bitcoin declined slightly, suggesting sellers were outpacing buyers at press time.

Bitcoin price bearish below $16,900 but indicators are suggesting otherwise, Crypto Trading News

Bitcoin Price Analysis: One-Day Chart

Bitcoin price bearish below $16,900 but indicators are suggesting otherwise, Crypto Trading NewsBitcoin was valued at $16,700 on the one-day chart | Source: BTCUSD on TradingView

BTC was trading at $16,700 at the time of writing. The coin recently lost the $16,800 support level; However, this is extremely short-term as BTC will soon start a rally on the chart.

A slight nudge from buyers will help BTC rally above $16,800, suggesting that the overheadResistance for the coin was $16,900.

Exceeding the $16,900 price mark will pave the way up to $17,000. On the other hand, if demand doesn’t appear immediately, BTC could continue to decline and trade at $16,600 before moving north again. The amount of BTC traded in the last session declined to indicate a mild bear market.

Technical Analysis

Bitcoin price bearish below $16,900 but indicators are suggesting otherwise, Crypto Trading NewsBitcoin showed a golden cross on the one-day chart | Source: BTCUSD on TradingView

Despite a drop in buyer numbers, the technical outlook has managed to remain positive for bitcoin price. The Relative Strength index recorded a downward trend, which indicated that buyers were slowly exiting the market. On the other hand, Bitcoin has shown a positive sign on the daily chart.

The asset’s price was above the 20-Simple Moving Average (SMA) line, meaning buyers still had the upper hand to drive price momentum in the market. Also, the 50 SMA (yellow) was below the 20 SMA (red) line; This is a gold cross, a pattern formed before the coin starts a rally.

Bitcoin price bearish below $16,900 but indicators are suggesting otherwise, Crypto Trading NewsBitcoin showed a buy signal on the one-day chart | Source: BTCUSD on TradingView

Consistent with the incoming bullish strength, bitcoin price showed a buy signal on the daily chart. The price dynamics are indicated by the divergence of the moving average convergence, which showed green signal bars.

Related reading: Ethereum Gains 4.5% in the weekly timescale as the Shanghai upgrade approaches

These bars were buy signals that also coincided with the notion that the asset’s price was going up. Bollinger Bands illustrate volatility and future price fluctuations. The bands were severely narrowed, in a squeeze, indicating a sharp reversal in price and possible trading opportunities for traders.

Featured image by UnSplash, charts by TradingView

Source: Crypto News Deutsch

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