Bitcoin Taps $18,100, Why This Is Dangerous For The Market?

  • BTC Price Tabs $18,100 Second Time as BTC Price Respect Weekly Downtrend. 
  • The daily price remains below the 50-200 Exponential Moving Averages (EMA). 
  • After a bullish divergence, the BTC price rebounded on the 4-hourly chart.

Bitcoin (BTC), compared to tether ($USDT), has seen a difficult week. The Federal Open Market Committee news (FOMC) caused the Bitcoin price to plummet. The Federal Reserve increased its target interest rate to 75 bps on Wednesday, causing Bitcoin’s price to fall from $197,000 to $18,100. (Data from Binance).

Bitcoin (BTC), Price Analysis on The Weekly Chart 

BTCUSDT Price Chart for Weekly | Source: BTCUSDT On

BTC prices continue to struggle after the weekly candle closed bearish. With the FOMC meeting coming up, the week ahead looks bearish. 

BTC prices tried to show some relief ahead of this week’s new week, moving to $19,500. However, this rebound was stopped by the news that the rate increase would hurt the market. This has caused concern as it had been an area of strong support for BTC.

BTC’s price will rise if the region around $18,100 is reached. If this happens, the support will be lessened and we may return to lower support zones of $17,500-$16,000 which act as areas in high demand.

For BTC’s price to restore its bullish move, the price needs to break and hold above $24,000 as the price has continued to respect the downtrend resistance on the weekly chart preventing the price of BTC from trending higher since falling from its all-time high. 

BTC’s price is not likely to rise above $19,000. If it fails to move above the support zone, the price could fall to $18,100. This support will also prevent sell orders. 

Weekly resistance for the price of BTC – $19,500.

Weekly support for the price of BTC – $18,000-17,500.

BTC Daily Price Analysis (1D) Chart

BTCUSDT Daily Price Chart | Source: BTCUSDT On

BTC prices continue to fluctuate in an asymmetric triangle daily; BTC’s price must move out of the range with good volume to reach a trend of 20,000. 

BTC’s price is at $18,900, which is below the Exponential Moving Averages 50 (EMA) and 200 (EMA). This resistance acts as support for the BTC market price. BTC prices are currently trading at $20,800 to $28,000. This corresponds with the resistance of 50 and 200 EMA. BTC’s price must regain 50 EMA in order to continue trending to $22,000

Daily resistance for the BTC price – $20,800.

Daily support for the BTC price – $18,100.

Featured image from Quit Falling, Charts From Tradeview 

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