On the daily chart below, we can see that the price is struggling at the 25K level with many rejections as depicted by the wicks of the daily candles. The price is also diverging with the MACD signalling a loss of momentum right at the top.
The fundamentals turned against the crypto market recently as the market completely flipped its expectations of future interest rates path from the Fed and now sees a higher terminal rate and no cuts for this year.
Liquidity and risk sentiment is what drives Bitcoin and both are starting to go against the “digital gold”. A break below the 23450 support will give the sellers more conviction to target the 21500 level with a further break lower possible.
On the 4 hour chart below, we can see that the price recently bounced from the strong 23450 support where we also had the 50% Fibonacci retracement level and the red long period moving average.
The price now tried 3 consecutive times to break the high without success and the moving averages now crossed to the downside as depicted by the orange circle. This may turn out to be a triple top pattern.
The red long period moving average is now acting as resistance and the sellers may start to pile in to target lower lows.
On the 1 hour chart below, we can see that at the moment it looks like the price went into a range between the 25230 resistance and the 23450 support. Conservative traders may want to wait for a breakout on either side before taking positions.
Aggressive traders should start to pile in before a breakout to catch a bigger move and ride the strong expected momentum after a break.
