Bitcoin Price Retreats After Fed Decision But 100 SMA Is The Key

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

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

Bitcoin Price Remains Supported

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

The price traded as high as $18,387 before there was a bearish reaction. The Fed increased interest rates by 0.5%, sparking sharp moves in the market. BTC price reacted 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 $18,387 high.

Don't wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today!
No Deposit 40 FREE SPINS at Wild.io on SIGN UP. Wheel of fortune, daily bonuses, 10 BTC in prizes monthly! Start Playing Now!

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

There is also a key bullish trend line 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 may perhaps revisit the $18,400 zone.

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

If bitcoin fails to clear the $18,000 resistance, there could be more downsides. An immediate support on the downside is near the $17,580 level and the trend line 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 might call more losses. In the stated case, the price could decline towards the $16,800 support in the near term.

Major Support Levels – $17,580, followed by $17,400.

Major Resistance Levels – $17,900, $18,000 and $18,500.

Tags: