FED's rate hike was expected by the markets, but what FED Chair Powell noted in a statement after the meeting was sort of a negative surprise. Up to that moment, many economists were hoping that the FED would try to fight inflation without putting the economy into recession, however, now there is no doubt about it. The FED will follow the worst-case-scenario and support the recession in the US. What is even worse is the timeline of it, where Powell mentioned the year 2025 where monetary tightening might become relaxed. Such statements support negative market sentiment and market squeeze, including the major crypto coins.
Bitcoin started the previous week by testing the support line at $20K to the downside. Supported by the negative sentiment, this line has been breached during the week, with the lowest level reached at $18.2K. However, as of the end of the week, BTC started moving back toward $20K in order to test it one more time. RSI was modestly volatile, moving between 36 and 44. Markets are still more closer to the oversold side, however, this line has not been crossed. Moving averages of 50 and 200 days stopped with convergence and are currently moving as two parallel lines with the downtrend.
Based on charts, BTC is still not ready to give up on $20K. As the price returned to the levels above $19K as of the end of the week, it significantly increased the probability for $20K, now the resistance line, to be tested in the coming days. Considering currently negative market sentiment, there is no higher probability that this line might be broken to the upside. On the opposite side, there is also equal probability for $18K short support to be tested once again.
Bitcoin started the previous week by testing the support line at $20K to the downside. Supported by the negative sentiment, this line has been breached during the week, with the lowest level reached at $18.2K. However, as of the end of the week, BTC started moving back toward $20K in order to test it one more time. RSI was modestly volatile, moving between 36 and 44. Markets are still more closer to the oversold side, however, this line has not been crossed. Moving averages of 50 and 200 days stopped with convergence and are currently moving as two parallel lines with the downtrend.
Based on charts, BTC is still not ready to give up on $20K. As the price returned to the levels above $19K as of the end of the week, it significantly increased the probability for $20K, now the resistance line, to be tested in the coming days. Considering currently negative market sentiment, there is no higher probability that this line might be broken to the upside. On the opposite side, there is also equal probability for $18K short support to be tested once again.
