Bitcoin fell to near key support at $18,200 hours after the Federal Reserve announced a 0.75 percentage point interest rate hike. This incident, along with setting a target interest rate of 4.4% in 2022, has caused analysts to predict a further decline in the price of Bitcoin.
Bitcoin price drop again
To Report NewsBTC, Bitcoin tried to stay above the $19,200 resistance level; However, it failed to cross the $19,500 resistance line and returned to the bearish zone again.
In response to the central bank’s interest rate increase from 2.75% to 3.25%, the price of Bitcoin fell sharply and fell below the level of $19,000. A look at the hourly chart of the BTC/USD pair shows the price breaking below a key uptrend line with a support area near $19,000.
Currently, Bitcoin is trading below $19,200 and below the 100-hour moving average. Of course, the price retested the $18,200 support and reached $18,140. After retracing back to the $19,150 mark (at the time of writing), Bitcoin is consolidating after losses from reaching the $18,200 support zone.
Bitcoin price moved above the 23.6% Fibonacci retracement line, bounded by $19,675 to $18,140, after the recent decline. In the uptrend, the first resistance will be the $18,775 level, after which Bitcoin should be able to break through the $19,000 range.
The 50% Fibonacci retracement line of the recent price decline is also close to the $19,000 range. Now, major resistance is forming near the $19,200 level and the 100 hourly SMA.
A close above the $19,200 range could increase Bitcoin’s chances of moving towards $19,650. The continuation of the upward trend can bring the price to the $20,000 resistance zone.
Will the downward trend continue?
If Bitcoin fails to stabilize above the $19,000 area, the downtrend could continue. In the situation, $18,2000 will be the first support zone.
The next major support will also form near the $18,000 level. A move below the $18,000 area could accelerate the downtrend and possibly push the price down to the $17,000 level.
Technical indicators
- Makdi index is losing its momentum in the downward range.
- The RSI indicator of the BTC/USD pair is below 50.
- The main support levels are $18,2000 and $18,000.
- Major resistance levels are $19,000, $19,200 and $19,500.
