On the daily chart below, we can see that the price got rejected from a key resistance level set in June 2021. Bitcoin had a parabolic rally since the peak of the banking “crisis” and we may now see a pullback with the most likely support at the 25231 level where we can also find the 38.2% Fibonacci retracement level.
The Fed yesterday hiked interest rates by 25 bps as expected and kept everything unchanged going against the market pricing of rate cuts by the end of this year. It was a dovish hike though as the Fed thinks that the recent events will tighten financial conditions anyway.
If that won’t be the case though, the Fed is ready to raise rates to bring inflation down to their 2% target. The Fed may be seeing risks that the market has not yet grasped fully, and this may lead to risk off if bad news starts to come.
On the 4 hour chart below, we can see that the price was diverging with the MACD trading into the resistance at 28911. This is a sign of a weakening momentum and generally we get pullbacks and sometimes even reversals.
The moving averages have crossed to the downside signalling a possible change in the short term trend. This should be a good place for the sellers to enter targeting the 38.2% Fibonacci retracement level.
On the 1 hour chart below, we can see that the price has pulled back to the 50% Fibonacci retracement level where we can also find confluence with the red long period moving average.
The zone between the 50 and 61.8% Fibonacci retracement levels is where the sellers should pile in. The buyers will need a break above that zone to get some control again and target a new higher high.
