Bitcoin started a fresh decline from the $19,500 barrier against the US Dollar. BTC is threatening to drop sharply below the $18,500 and $18,000 levels. Bitcoin fell again as the Fed hiked rates to 3.25%.
The price is currently trading below $19,200 and the 100 hourly simple moving average. There was a break below a key bullish trend line with support near $19,000 on the hourly chart of the BTC/USD pair. The pair needs to stay above $18,200 to avoid further losses in the near term.
Bitcoin price tried to scale above $19,200 level. However, BTC failed to break the $19,500 resistance zone and remained in a negative zone. As a result, a bearish reaction ensued below the $19,000 level. The Fed’s rate hike from 2.75% to 3.25% caused a dramatic drop. There was a break below a key bullish trend line with support near $19,000 on the hourly chart of the BTC/USD pair.
Bitcoin is trading below the $19,200 level and the 100 hourly simple moving average. The price fell as low as $18,140 after retesting the $18,200 zone. It has already started consolidating losses above the $18,200 support level. There was a move above the 23.6% Fib retracement level of the recent downturn from the $19,675 swing high to the $18,140 low. On the upside, the $18,775 level represents an immediate barrier. The next major barrier is near $19,000.
The 50% Fib retracement level of the recent drop from the $19,675 swing high to $18,140 low is also near the $19,000 level. The biggest Resistance building near the $19,200 region and the 100 hourly simple moving average. A close above $19,200 may increase the probability of a surge above $19,650. Further advance could push the price to the $20,000 resistance level.
What if BTC/USD breaks below support?
If bitcoin does not return above $19,000, it may continue falling. On the upside, there is immediate support near $18,200. The next significant level of support is around $18,000.
A clean break below $18,000 could set the stage for a larger decline. In the case mentioned, the price could reach $17,000.
Source: Crypto News Deutsch