On the daily chart below, we can see that the break below the key support level at 21500 failed as the price shot up with a very strong momentum eventually breaching the high at 25231. We can say that the break above the high failed as well, as depicted by the daily shooting star candlestick.
We can also see that the last big spike up makes the divergence with the MACD even stronger, which is a bad omen for the buyers. In fact, this latest move up came amid the turmoil in the banking sector and there are talks of bitcoin being bought as a safe haven like gold.
But this may have been just a speculative move on the basis that the Fed will cut interest rates and flood the market again with liquidity. We will see how this evolves but it looks like the Fed will still hike interest rates and probably hold them there enough to cause a recession.
On the 4 hour chart below, we can see that on Monday as the Fed unveiled its new emergency lending facility to calm the markets and avoid a banking crisis, the price of Bitcoin started to rally. Once the price broke above the trendline, the momentum chasers jumped in and pushed the price even higher.
Now the market is consolidating a bit after such a huge run, and we can see that the buyers have the support of the red long period moving average and the 38.2% Fibonacci retracement level of the entire move up. The sellers will want to wait for a break lower before piling in and pushing the price to new lows.
On the 1 hour chart below, we can see more clearly the support zone at the 24000 level. The buyers will lean on that support with defined risk and increase the momentum if the price breaks the 25231 resistance. The sellers, on the other hand, will aim for a break below the support zone and jump in to target new lows and possibly erase the entire move up if the divergence we saw on the daily chart works out.
