It was a bearish Wednesday, with BTC falling 3.07%, to end the day at $27,250. Fed monetary policy and Fed Chairman Powell’s press conference pushed BTC below $27,000, before closing the day at $27,250. However, technical indicators remained bullish, with $30,000 still in sight despite bearish session.
On Wednesday, Bitcoin (BTC) fell 3.07%. Reversing a 1.44% gain on Tuesday, BTC ended the day at $27,250. BTC revisited the $28,000 handle for the fourth day in a row, printing a fresh 2023 high before pulling back.
After a hectic morning, BTC rose to a high of $28,818 in the late afternoon, before pulling back. BTC broke above the first major resistance level (R1) at $28,594, before falling to a low of $26,591. BTC fell through the first major support level (S1) at $27,471, and briefly through the second major support level (S2) at $26,830, before ending the day at $27,250.
Fed Chairman Powell Sends BTC to Levels Below $27,000 in Policy Pledge
On Wednesday, the Federal Reserve raised interest rates by 25 basis points. While the rate hike was in line with market expectations, more aggressive projections from the FOMC and Fed Chairman Powell weighed on riskier assets.
Powell discussed the possible influences of the banking sector on monetary policy and had the following to say:
“We are no longer stating that we anticipate that ongoing rate increases will be appropriate to quell inflation. Instead, we now anticipate that further tightening of policy may be appropriate.”
However, Powell reiterated a commitment to bring inflation to target, which was enough to send BTC into negative territory.
It is a relatively quiet day ahead on the US economic calendar. However, US jobless claims will influence the afternoon session. Economists forecast initial jobless claims to rise from 192k to 197k. Levels below 200k would leave the Fed under pressure to push interest rates higher.
With the US economic indicators on the lighter side, investors should continue to monitor the crypto news leads. News and updates from Binance and FTX of the ongoing SEC vs. Ripple case will attract interest. The attention of regulators and legislators will also play a role, as the US government and regulators divert attention from the banking sector.
Bitcoin (BTC) Price Action – Technical Indicators
This morning, BTC was down 0.06% at $27,241. A range-bound start to the day saw BTC rally to an early high of $27,273 before falling to a low of $27,224.
BTC needs to move through the $27,553 pivot to target the first major resistance level (R1) at $28,515, and Wednesday’s high of $28,818. A return to $28,000 would indicate a prolonged bullish session. US crypto news leads and economic indicators should support cryptocurrencies to support a prolonged rally.
In the event of a prolonged rally, BTC would likely test the second major resistance level (R2) at $29,780, and resistance at $30,000. The third major resistance level (R3) sits at $32,007.
BTC settled above the 50-day EMA ($26,637). The 50-day EMA has broken further away from the 100-day EMA, with the 100-day EMA pulling away from the 200-day EMA sending bullish signals.
A hold above the 50-day EMA ($26,637) would support a break of R1 ($28,515) to target R2 ($29,780) and $30,000. However, a drop through the 50-day EMA ($26 637) would give the bears a run to S1 ($26,288), and below $26,000. A drop through the 50-day EMA would send a bearish signal.
By Audy Castaneda
