Bitcoin price analysis shows a bearish trend. BTC is still holding above the $16,500 support level. Bitcoin shows a downward wedge pattern on the daily chart
Bitcoin price analysis shows that Bitcoin bulls are feeling as BTC continues to move between higher highs and lower lows in a wedge shape. Despite the strong resistance at $18,000, the main cryptocurrency has failed in recent days, which may indicate a sharp decline. Bitcoin is trading at $16,625.32 at the time of writing, down 0.45% in the last 24 hours.
This week, the crypto market rose as investors reacted enthusiastically to the “positive” Consumer Price Index (CPI) news; However, after hearing a sarcastic speech from Federal Reserve Chairman Jerome Powell at his post-accommodation press conference, many of those gains were quickly wiped out.
The Federal Reserve’s recent interest rate of 0.50% was within expectations for most market participants, however, what raised eyebrows was their belief that show that it is necessary to reach the range of 5-5.5% and above to be able to settle. and desired inflation. 2% target.
News of the Fed’s delayed policy change reduced market expectations of a move to the middle of 2023, leading to a reduction in the overall impact on crypto markets and equities. Despite this news, Bitcoin managed to stay above the $16,500 support level, indicating that investors may still be running more bearish on BTC in the near term.
Also, a strong recovery from this level could indicate a potential breakout from a falling wedge pattern, which could indicate a possible upside rally and potential rally.
Bitcoin Price Analysis and Daily Chart: BTC Stumbling in Downtrend
On the daily chart, Bitcoin price analysis shows that BTC is trading in a descending triangle that has been forming for the past week. Resistance for this pattern sits at $18,000 and has proven to be strong so far. On the other hand, the support is around $ 16,500 and is well supported even after several attempts by the bears to break it.
Bitcoin is currently on a strong path and will soon prepare for a major price rally. If Bitcoin can break out of this pattern, we can see a bullish end that could test $20,000 in the coming weeks.
On the other hand, a break of the $16,500 support would lead to further losses. Important technical indicators suggest that the potential disruption is higher than the collapse. The MACD indicates that the light is starting to rise and the RSI is above 50, indicating a negative trend in the market.
Bitcoin Price Analysis and 4 Hour Chart: BTC is Rallying Higher
In the 4 hour chart, Bitcoin price analysis shows that BTC is trading in an ascending triangle pattern. This is highly volatile and suggests that the bulls are gathering momentum for a potential rally. The MACD and RSI indicators are also showing signs of bullishness as both have created positive divergences indicating that the bullish trend is running.
Important support for BTC is at $16,500 and if that can hold in the next few days, we can see Bitcoin break from its current range and continue to test higher levels.
Conclusion of Bitcoin Price Analysis
Finally, Bitcoin price analysis shows that BTC is currently fluctuating between highs and lows falling into a wedge shape. Technical indicators suggest that the potential disruption is higher than the potential for damage. If Bitcoin manages to do this, we may see it rally towards $20,000 in the near future. In addition, if BTC does not show up, it can lead to the break of the $16,500 support and another stop in the coming days.