Bitcoin price saw a strong increase above $68,500 and even tested $70,000, but post-fed there was a major bearish reaction in the market. The price started another decline from the $70,000 resistance zone and is currently trading below $68,550 and the 100 hourly Simple moving average. There is a connecting bullish trend line forming with support at $67,500 on the hourly chart of the BTC/USD pair (data feed from Kraken). Despite the initial increase, the upsides might be limited above the $68,550 level.
After clearing the $69,200 resistance zone, Bitcoin faced a strong bearish reaction following the Fed’s decision to keep rates at 5.5%. The price dipped below $68,800 and $68,500 levels, testing the $67,200 zone. Currently, the price is consolidating losses near the 23.6% Fib retracement level. Bitcoin is trading below $68,800 and the 100 hourly Simple moving average, with a connecting bullish trend line offering support at $67,500. On the upside, the price is facing resistance near the $68,250 level, with major resistance levels at $68,550, $69,200, and potentially $70,000.
If Bitcoin fails to climb above the $68,550 resistance zone, it could start another decline in the market. Immediate support on the downside is near $67,200, followed by major support levels at $67,000 and $66,000. Further losses might send the price toward the $65,500 support zone in the near term, indicating a bearish outlook for BTC/USD pair.
Hourly MACD is now losing pace in the bearish zone, reflecting the selling pressure in the market. The Hourly RSI for BTC/USD is below the 50 level, suggesting a bearish sentiment among traders. Major support levels to watch include $67,000 and $66,000, while major resistance levels stand at $68,550 and $69,200. The current market conditions indicate a possible downward movement in the Bitcoin price unless there is a significant breakthrough above key resistance levels.
The recent price action of Bitcoin highlights the volatility and unpredictability of the cryptocurrency market. Traders and investors should exercise caution and closely monitor support and resistance levels to make informed decisions in this ever-changing market.
