On the daily chart below, we can see the Bitcoin price rejected the high at 24245 printed in summer 2022. The risk sentiment is what mainly drives the crypto market and the recent developments on the interest rates side may be a headwind for the market.
We saw a dip recently, but the main event will the US CPI report next week. If that beats expectations, we should see a big risk off sentiment kicking in, sending the price of Bitcoin much lower. The first support on a bigger sell off is at 18152. On the other hand, the buyers will need to break the resistance around the 25K number to start eyeing higher highs.
On the 4 hour chart below, we can see that the price was diverging with the MACD trading into the resistance at 24245. That was signalling a weakening upside momentum and recent fundamental catalysts did the rest to bring the price down. The moving averages are pointing south at the moment and a pullback into the swing resistance at 22366 would be preferable for the sellers.
On the 1 hour chart below, we can see where the sellers may start to pile in as there is a good confluence into the same level. The swing resistance, the 38.2% Fibonacci retracement level and the trendline all converge around the 22366 price zone. From a risk management perspective, that would be a great level where sellers can lean on and place their stops above the trendline and 50% or 61.8% Fibonacci levels.
