BTC Price Levels to Watch as Bitcoin Dives Below $17.5K After FOMC
Bitcoin (BTC) is trending down after hitting one-month highs around the latest macroeconomic data and policy update from the US.
After peaking at around $18,370 on Bitstamp on December 14, BTC/USD is now giving back its gains, leading traders to see where the next reversal could occur.
Opinions differ – some warn that the support levels for bulls to hold are already falling, while others believe that recent events are just another dot on the road to much lower levels.
Cointelegraph takes a look at what some popular commentators are looking for when it comes to short-term BTC price action.
Michël van de Poppe: $17,200 must be held for $20,000 shot
To have called macro market reaction to Federal Reserve “relatively dull” this week, Michaël van de Poppe, CEO and founder of trading firm Eight, says support levels are already close for BTC/USD.
With the pair down nearly $1,000 from local highs at the time of writing, Van de Poppe saw $17,200 as a line in the sand for bulls.
After the gains, a higher low (HL) could be on the cards next time. On the upside, bulls holding support could still deliver a pixie rally that includes a trip past the $20,000 mark.
“All in all, we want some consolidation on Bitcoin, and are looking for a HL,” he told Twitter followers.
“Area to hold remains the same; $17.2-17.4K. If we do that, the path to $20.5k in 2-4 weeks is open.”
BTC/USD last traded above $20,000 just before the FTX debacle sent the entire crypto market down 25% or more.
Daan Crypto Trades: Market Wants to ‘Take All Out’
Bitcoin is reaching for liquidity up and down, says popular trading and analysis account Daan Crypto Trades.
To have highlighted $17,600 – Bitcoin’s lowest level since June this year – as an important level for bulls, BTC/USD took a few hours to go even lower.
As such, it was clear that both longs and shorts could be punished on short time frames.
“All joking aside, the market is looking to take everyone out on both sides right now,” Daan wrote in a subsequent tweet.
“Good to keep an eye on all the untapped highs and lows to see where the price might go next.”
The unused liquidity extended to just above $17,000 at the time of writing, while to the upside $17,750 and up represented selling pressure.
Daan previously flagged $18,200 as a key level to turn to support in case sustained upside returns.
Crypto Tony: $17,300 “will be hit”
Fellow trader Crypto Tony, meanwhile, said he assumed $17,300 would reappear on the day.
Related: Bitcoin Bear Market 70% Drop Kills BTC “Tourists” As Metric Screams Buy
“Hedge short doing well and stop loss on Bitcoin on my previous long at $17,300 will no doubt be hit today. Only took partial profit on that push but not much. Not the best trade and not the worse,” he explained to followers.
A further tweet added that BTC/USD needed to see further buying interest for new upside.
As Cointelegraph reported, there are many much more bearish holds on BTC price action, including those of Il Capo of Crypto, who still believe that mass capitulation is yet to come.
In the longer term, Crypto Tony also refuses to rule out a dive to as low as $10,000.
BTC/USD was trading around $17,500 at the time of writing, data from Cointelegraph Markets Pro and TradingView showed, just before the start of trading on Wall Street.
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
