Bitcoin Price Spikes on Fed Rate Cut But Hits $8.9K Sell-Wall

The toll of Bitcoin (BTC) fabricated a severe drop in the by week, similar to the heavy dropdown of the equity markets. However, equity markets have been showing strength this week with a strong relief bounce and today's announcement from the United states Fed of a 50 bps charge per unit cutting.

Not only are equity markets showing strength, but a similar bounce is also existence seen in the crypto markets as the toll of Bitcoin rebounded from $8,400 to $8,950. But are the crypto markets finished with the retracements or is there more to come?

Crypto market daily performance. Source: Coin360

Cost of Bitcoin reacts to Fed rate cut

Earlier today, the Fed appear to cut the rates by half a per centum. The proclamation came at xv.00 UTC, which immediately gave a reaction to the markets, as the price of Bitcoin shot up by $170 in the minutes after.

BTC USDT 1-infinitesimal chart. Source: TradingView

All the same, minutes afterward, the volatility starts to kicking in for the markets, resulting in deep wicks and massive movements all over the fields. Not merely is Bitcoin hopping around severely, but the same tin too exist stated virtually the commodity and equity markets.

BTC USDT 1-minute chart. Source: TradingView

Bitcoin toll holds the 21-Week MA every bit support

BTC USD ane-week chart. Source: TradingView

The weekly chart of Bitcoin is showing clear support at the horizontal level between $8,200-$8,400 and the 21-week MA (moving average). Nonetheless, after last weeks' candle, there's not much in favor of the bulls. A large bearish candle is inducing further downwards pressure.

The weekly chart shows that the price of Bitcoin is at a must-concur level, as the 21-week MA served as support throughout the entire balderdash cycle from 2022 till 2022. Losing such significant back up would point further downwards pressure, targeting $seven,500 and $6,800.

Bitcoin fighting with 200-24-hour interval MA

BTC USDT one-day chart. Source: TradingView

The daily chart is showing the back up effectually $viii,400, through which a bounce was warranted. The price of Bitcoin is facing its first resistance around $eight,950, while it broke dorsum above the 200-solar day MA.

The daily chart is further providing potential resistances and support levels. Some relief is expected after a massive drib of $1,400. Resistances above the current cost levels are found at $viii,950, $9,175 and mainly $nine,350-9,400 level (previous support before the drop).

These levels are about likely getting a examination for resistance before the price needs to come up downward to merits and confirm support at $8,400 or lower.

BTC USDT 6-hour chart. Source: TradingView

The vi-hour nautical chart of Bitcoin is showing a clear rejection at the $8,950 level. Such a rejection confirms that the price of Bitcoin needs to retest lower levels for support, which the price is doing right now. Potential support tin exist found at $8,650-viii,700 or in the green zone at $8,400 again.

The general conclusion is that the book tapered off, an indication that the marketplace is indecisive and range-bound.

Full market place capitalization finding support above 200-solar day MA

Total market place capitalization cryptocurrency 1-twenty-four hours chart. Source: TradingView

The total marketplace capitalization of cryptocurrency is showing support in this area and nonetheless belongings in a higher place the 200-day MA. The chart shows two back up areas beneath the electric current price, one to be found at $238 billion and the second one at $224-228 billion (around the 200-day MA).

Property at these levels would induce some upward potential, as the upper resistance is plant at $267 billion. However, is in that location confirmation of a trend reversal?

Non however. Losing the 200-day MA and the horizontal support would induce farther downward pressure, which means another drib of effectually xx%. It'due south reasonable that traders and investors all over the market are patiently waiting for the next steps to take, equally Bitcoin is not giving clear direction.

The bullish scenario for Bitcoin

BTC USDT one-24-hour interval bullish scenario chart. Source: TradingView

The bullish scenario remains unchanged and is still valid. The primal factor is the support of around $eight,300-8,400 and the 21-week MA. As long as that area remains support, there are arguments for upwards force per unit area towards the next resistance. Main resistances are institute at $eight,950, $9,175 and $9,300-9,400.

Nonetheless, crucial would exist whether the price of Bitcoin holds to a higher place the 200-twenty-four hour period MA, which is a crucial indicator for traders for bullish or bearish momentum.

Through that, a second bullish scenario tin can be fabricated from property the 200-24-hour interval MA. If the price of Bitcoin closes above it (which is currently above $eight,700), further upward momentum is warranted.

Finally, a retest of $9,300-9,400 doesn't hateful that the trend is bullish in general. A breakout above this level would warrant further upwards momentum. However, holding $8,300-8,400 could pb to a temporary upwards relief rally, while the crucial resistance at $ix,300 is yet essential to break.

The bearish scenario for Bitcoin

BTC USDT 1-twenty-four hour period surly scenario nautical chart. Source: TradingView

The bearish scenario of Bitcoin provides a few scenarios. The key indicator for further downward pressure would be losing the $8,300-8,400 support area. Through this, the 200-24-hour interval MA and 21-week MA become resistances, and new downwards demand is probable. The next targets will exist establish at $vii,700 from there.

However, a surly retest of $9,300 would likewise induce further downward momentum is warranted, and at least a retest of $viii,300-8,400 is needed for further confirmation of management.

Concluding, the crucial levels are $eight,300-8,400 every bit support and $nine,300-9,400 as resistances. Breaking through either of the ii would warrant further data of the direction of the market.

The views and opinions expressed hither are solely those of the writer and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves take a chance. You should bear your own research when making a decision.

Source: https://cointelegraph.com/news/bitcoin-price-spikes-on-fed-rate-cut-but-hits-89k-sell-wall

Posted by: tejadacoloutere.blogspot.com

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