Bitcoin price pulls back after Fed decision, but 100 SMA is key

Bitcoin price climbed towards $18,400 before a bearish reaction. BTC is now trading near a major support at $17,550 and could bounce back.

• Bitcoin broke the $18,000 resistance zone before a downside correction.
• The price is trading above $17,500 and the 100 hourly simple moving average.
• An important bullish trend line is forming with support near $17,580 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair may start another rise unless it trades below the 100 hour SMA.

Bitcoin price remains supported

Bitcoin price extended its gains above the $17,800 resistance zone. BTC even climbed above the $18,000 resistance zone and settled well above the 100-hour simple moving average.

The price traded as high as $18,387 before a bearish reaction. The Fed raised interest rates by 0.5%, triggering sharp moves in the market. BTC price reacted to the downside and traded below the $18,000 support zone. There was a clear move below the 23.6% Fib retracement level of the upward move from the $16,880 low to the $18,387 high.

However, the bitcoin price is trading above $17,500 and the 100 hourly simple moving average. It holds the 50% Fib retracement level for the upward move from the $16,880 low to the $18,387 high.

An important bullish trend line is also forming with support near $17,580 on the hourly chart of the BTC/USD pair. On the upside, an immediate resistance is near the $17,900 level. The first major resistance is near the $18,000 zone, above which the price could perhaps go back to the $18,400 zone.

The next major resistance is near $18,500, above which the price could gain momentum and rise towards the $19,200 zone in the short term.

Downside breakout in BTC?

If bitcoin fails to clear the $18,000 resistance, there could be more downside. An immediate support on the downside is near the $17,580 level and the trendline support.

The next major support is near the $17,400 zone and the 100 hourly simple moving average. A downside break below the $17,400 support could invite more losses. In the indicated case, the price may decline towards the $16,800 support in the short term.

Technical indicators:

Hourly MACD – MACD is now picking up speed in the bearish zone.

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

Major support levels – $17,580, followed by $17,400.

Major resistance levels – $17,900, $18,000 and $18,500.