Bitcoin price has been struggling below USD 17,000 for several weeks and recently dropped below USD 16,900. This downward movement on the Bitcoin chart can be attributed to the recent Federal Open Market Committee (FOMC) minutes.
The minutes of the meetings indicated that the Federal Reserve System would set higher interest rates for the foreseeable future.
This apparently caused ripples in the market, causing participants to react negatively. The asset’s technical outlook reflected a decline in accumulation, but indicators are still positive on Bitcoin price in the coming trading sessions. From the daily chart, it can be seen that BTC will recover in the next trading sessions.
Bitcoin remains stable above the USD 16,600 price. Currently, the price of the asset is consolidating, with major altcoins following the same price trajectory. In the past 24 hours, BTC fell by 0.6%. The Bitcoin price is currently trading at a discount of 76% from its all-time high of 2021. Bitcoin’s market cap fell slightly, indicating that there were more sellers than buyers at the time of writing.
Bitcoin Price Analysis: One Day Chart
BTC was trading at $16,700 at the time of writing. The coin recently lost the $16,800 support level; however, this is extremely short term as BTC will soon begin recovery on the chart.
A slight push from the buyers will help BTC propel itself above USD 16,800, indicating that overhead resistance for the coin was at USD 16,900.
Clearing the $16,900 price mark will clear the way for $17,000. On the other hand, if demand doesn’t pop up immediately, BTC could pull back further to sit at $16,600 before starting to move north again. The amount of BTC traded during the last session fell to indicate slight bearishness.
Technical analysis
Despite a drop in buyers, the technical outlook for Bitcoin’s price has remained positive. The Relative Strength Index recorded a pullback, indicating that buyers were slowly exiting the market. On the other hand, however, Bitcoin has shown a positive sign on the daily chart.
The asset’s price was above the 20-Simple Moving Average (SMA) line, meaning that buyers still had the upper hand in driving price momentum in the market. In addition, the 50-SMA (yellow) was below the 20-SMA (red) line; this is a gold cross, a pattern that forms before the coin starts a rally.
Consistent with the incoming bullish strength, Bitcoin price displayed a buy signal on the daily chart. The price momentum is indicated by the Moving Average Convergence Divergence, which showed green signal bars.
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These bars were buy signals, which also corresponded to the idea that the price of the asset was about to rise. Bollinger Bands illustrate volatility and future price movements. The bands were heavily constricted, in a bottleneck, indicating a sharp drop in price and potential trading opportunities for traders.
Featured image from UnSplash, charts from TradingView
