Bitcoin (BTC) experienced a strong dip buying last week after falling to nearly $18,000-a level last seen at the bottom of this year’s risk market in June. At mid-week, the FOMC meeting dominated Bitcoin’s price action, as investor sentiment shifted toward the Fed’s decision, overshadowing fundamental crypto developments. Bitcoin may not be out of the woods yet, with monetary policy and regulatory issues posing challenges to the world’s No. 1 crypto. The BTC bulls are yet to find footing above $20,000 amid the continuous dip buying by crypto investors. A further drop in the BTC/USD price would almost certainly attempt to test the $17,500 level once more. Bitcoin was trading at $18,898 at the time of publication, up 2.55% in the previous 24 hours. Bitcoin and most cryptocurrencies are strongly linked to U.S. tech stocks; the Nasdaq 100 fell below 11350 this week and is now trading at June levels (near June lows), highlighting the possibility of further BTC losses. The Fed’s rapid rate hikes are draining liquidity from the markets and reducing retail investors, which is a primary driver for cryptocurrencies.
Key Levels
Resistance Levels: $28,000, $25,000, $22,000
Support Levels: $18,000, $15,000, $12,000
BTC/USD Daily ChartBitcoin buyers appeared to reclaim the upper hand after the BTC/USD rebounded from the $18,000 region, maintaining the pair’s positive bias. Although the pair has dropped to its lowest levels of the month, buying sentiment has kept it positive. BTC may rise as the USD is dragged down by inflation. BTC/USD started the week by plunging from the $20,000 mark while consolidating gains above the $18,000 mark on the daily time frame.
The pair traded above support, limiting the expected bearish potential. The chart shows that no negative correction is possible until the recently developed support levels of $18,153 and $17,567 are breached. The cluster resistance level at $22,000 is the next target for a rally. This could be the case as long as the $17,567 support level holds.
BTC/USD 4-Hour ChartThe BTC/USD is still falling today, with an intraday bias toward the $18,857 low level. A breakthrough would confirm the resumption of the corrective drop from the level of $22,800. On the plus side, a break above the minor resistance level of $22,000 could shift the intraday bias to neutral. On the downside, the $18,000 zones offer preliminary support.
The bias in BTC/USD remains in a range on the 4-hour chart. The continuation of the rally from $17,567 is anticipated to target the level of $25,000 to $30,000 from $17,567 and could be confirmed by the continuous split there. A decisive move lower could provide the bears with absolute leverage and worsen the short-term outlook, with the $17,567 level likely to resurface.
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