Bitcoin price could take a big hit after Fed rate hike

Bitcoin started another decline from the $19,500 resistance against the US dollar. BTC is at risk of a sharp decline below the $18,500 and $18,000 levels.

• Bitcoin started another decline after the Fed raised interest rates to 3.25%.
• The price is trading below $19,200 and the 100 hourly simple moving average.
• There was a break below an important bullish trend line with support near $19,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair needs to hold above the $18,200 level to avoid further losses in the short term.

Bitcoin price restart decline

Bitcoin price tried to gain strength above the $19,200 level. However, BTC failed to clear the $19,500 resistance zone and remained in a bearish zone.

As a result, there was a bearish reaction below the $19,000 level. The Fed rate hike from 2.75% to 3.25% triggered a sharp decline. There was a break below an important bullish trend line with support near $19,000 on the hourly chart of the BTC/USD pair.

Bitcoin price is now trading below $19,200 and the 100 hourly simple moving average. There was a retest of the $18,200 zone and the price traded as low as $18,140. It is now consolidating losses above the $18,200 support zone.

There was a move above the 23.6% Fib retracement level of the recent decline from the $19,675 swing high to the $18,140 low. On the upside, an immediate resistance is near the $18,775 level. The next major resistance is near the $19,000 level.

The 50% Fib retracement level of the recent decline from the $19,675 swing high to the $18,140 low is also near the $19,000 zone. The main resistance is now forming near the $19,200 zone and the 100-hour simple moving average.

Source: BTCUSD on TradingView.com

A close above the $19,200 level could increase the chances of a move to $19,650. Any further gains could send the price towards the $20,000 resistance zone.

More losses in BTC?

If bitcoin fails to break above the $19,000 zone, it may continue to move downwards. An immediate support on the downside is near the $18,200 zone.

The next major support is near the $18,000 level. A clear move below the $18,000 zone could set the pace for a bigger decline. In the indicated case, the price may even test the $17,000 level.

Technical indicators:

Hourly MACD – MACD is now losing momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – RSI for BTC/USD is now below the 50 level.

Major support levels – $18,200, followed by $18,000.

Major resistance levels – $19,000, $19,200 and $19,500.