Bitcoin Loses $18,100 Why Is This Dangerous For The Market?
- BTC price is $18,100 for the second time as the price respects the weekly decline.
- The price continues to trade below the 50 and 200 exponential moving average (EMA) on the daily time frame.
- BTC price bounced on the four-hour chart after a bullish divergence emerged.
The price of Bitcoin (BTC) has had a tough week against Tether (USDT) as the price fell following news from the Federal Open Market Committee (FOMC). Following news that the Federal Reserve raised its target interest rate by 75 bps, the price of Bitcoin (BTC) fell from $19,700 to the $18,100 region. (Data from Binance)
Bitcoin (BTC) price analysis on the weekly chart
The price of BTC continues to struggle to keep its head afloat after seeing the weekly candle close bearishly, with the new week looking more bearish ahead of the expected FOMC meeting.
The BTC price tried to show some relief ahead of the new week as the price moved into the $19,500 region, but this rebuttal was cut short as the news of an increased interest rate hike hurt the price as the price of BTC fell to previous record highs causing concern as this has been a strong support zone for the price of BTC.
If the price of BTC continues to drain this $18,100 region, it will weaken the support and we are likely to visit lower support areas of $17,500-$16,000, acting as high demand zones.
For BTC’s price to resume its bullish movement, 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.
The price of BTC is currently facing resistance to break above $19,500; If the price of BTC fails to break and hold above this support zone, we can see the price go lower to the $18,100 support and lower if this support fails to hold sell orders.
Weekly resistance for the price of BTC – $19,500.
Weekly support for the price of BTC – $18,000-17,500.
Price analysis of BTC on the daily (1D) chart
The daily timeframe of BTC prices continues to move in the area of an asymmetric triangle; the price of BTC needs to break out of this area with good volume for the price to trend towards a top of $20,800.
On the daily time frame, the price of BTC is currently trading at $18,900 below the 50 and 200 exponential moving average (EMA), acting as resistance for the BTC price. The price of $20,800 and $28,000 corresponds to the resistance at 50 and 200 EMA for the price of BTC. The price of BTC needs to regain the 50 EMA for a chance to trend to $22,000.
Daily resistance for BTC price – $20,800.
Daily support for BTC price – $18,100.
Featured Image From Quit falling, Charts From Tradingview
