It was a bearish session on Tuesday, with BTC tumbling 0.87% to end the day at $22,209. Fed Fear returned Tuesday, with Fed Chairman Powell raising the prospect of a 50 basis point rate hike. in March. Technical indicators are bearish, with less than $21,500 in sight.
On Tuesday, Bitcoin (BTC) fell 0.87%. Following a 0.12% loss on Monday, BTC ended the day at $22,209. While it failed to reach the $23,000 level for the fourth session in a row, BTC revisited levels below $22,000 for the second time since February 14.
A mixed start to the day saw BTC rally to an early high of $22,554. Entering the range of the first major resistance level (R1) at $22,571, BTC slid to a mid-afternoon low of $21,950. BTC fell through the first major support level (S1) at $22,258 and the second major support level (S2) at $22,112 before a partial recovery to end the day at $22,209.
Fed Chairman Powell Sends BTC and NASDAQ Composite Index into the Red
It was a quiet day on the US economic calendar. There were no US economic indicators for investors to consider, leaving Fed Chairman Powell to influence the afternoon session.
Unexpectedly aggressive testimony caught investors by surprise. Powell sent BTC below $22,000, and the NASDAQ Composite Index into negative territory.
On Tuesday, Fed Chairman Powell spoke of the need for higher rates to combat inflation, noting that economic data was better than expected. In response, the NASDAQ Composite Index fell 1.25%, and the S&P 500 fell 1.53%. The NASDAQ mini is down 15.75 points this morning.
While Fed Chairman Powell weighed on investor sentiment, regulatory activity and talk from US lawmakers continued to put pressure on BTC and the broader crypto market.
However, Court decisions against SEC motions cushioned the downside for BTC and the broader crypto market. On Tuesday, the US Courts approved the Binance.US acquisition of Voyager Digital for $1.3 billion.
On Tuesday, a Senate Environment and Public Works Subcommittee hearing on crypto asset mining and the environment had little impact on proof-of-work cryptocurrency prices.
Bitcoin (BTC) Price Action – Technical Indicators
This morning, BTC rose 0.18% to $22,250. A bullish start to the day saw BTC rally from an initial low of $22,203 to a high of $22,291.
BTC needs to avoid the $22,238 pivot to target the first major resistance level (R1) at $22,525, as well as Tuesday’s high of $22,554. A return to $22,500 would signal a bullish session. US crypto news leads and economic indicators should be crypto friendly to support a prolonged rally.
In the event of a prolonged rally, BTC would likely test the second major resistance level (R2) at $22,842, and resistance at $23,000. The third major resistance level (R3) sits at $23,446.
Looking at the EMAs and the 4-hour candlestick chart, it was a bearish sign. BTC sat below the 50-day EMA ($22,701). The 50-day EMA pulled back from the 200-day EMA, and the 100-day EMA turned down to the 200-day EMA, which led to bearish signals.
A move through R1 ($22,525) would give bulls a run on the 50-day EMA ($22,701) and R2 ($22,842). A move through the 50-day EMA would send a bullish signal. However, a failure to break above the 50-day EMA ($22,701) would leave major support levels in play.
By Audy Castaneda
