TA: Bitcoin Price Could Take Major Hit After Fed Rate Hike

Aayush Jindal

Last Updated: June 11, 2024 2:26 pm

2 mins read

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Bitcoin started another decline from the $19,500 resistance against the US Dollar. BTC is at risk of a sharp decline below the $18,500 and $18,000 levels.

Bitcoin started another decline after the fed increased rates to 3.25%.
The price is trading below $19,200 and the 100 hourly simple moving average.
There was a break below a key bullish trend line with support near $19,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair must stay above the $18,200 level to avoid more losses in the near term.

Bitcoin Price Restarts Decline

Bitcoin price attempted to gain strength above the $19,200 level. However, BTC failed to clear the $19,500 resistance zone and stayed in a bearish zone.

As a result, there was a bearish reaction below the $19,000 level. The fed rate hike from 2.75% to 3.25% triggered a sharp decline. There was a break below a key bullish trend line with support near $19,000 on the hourly chart of the BTC/USD pair.

Bitcoin price is now trading below $19,200 and the 100 hourly simple moving average. There was a retest of the $18,200 zone and the price traded as low as $18,140. It is now consolidating losses above the $18,200 support zone.

There was a move above the 23.6% Fib retracement level of the recent decline from the $19,675 swing high to $18,140 low. On the upside, an immediate resistance is near the $18,775 level. The next major resistance sits near the $19,000 level.

The 50% Fib retracement level of the recent decline from the $19,675 swing high to $18,140 low is also near the $19,000 zone. The main resistance is now forming near the $19,200 zone and the 100 hourly simple moving average.

Source: BTCUSD on TradingView.com

A close above the $19,200 level might increase the chances of a move to $19,650. Any more gains might send the price towards the $20,000 resistance zone.

More Losses in BTC?

If bitcoin fails to recover above the $19,000 zone, it could continue to move down. An immediate support on the downside is near the $18,200 zone.

The next major support is near the $18,000 level. A clear move below the $18,000 zone could set the pace for a larger decline. In the stated case, the price may even test the $17,000 level.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $18,200, followed by $18,000.

Major Resistance Levels – $19,000, $19,200 and $19,500.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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