Bitcoin’s price has fallen below $17,000 over the past several weeks. Recently, it fell below $16,900. The recent minutes of the Federal Open Market Committee (FOMC), could explain the Bitcoin chart’s downward trend.
Minutes of the meetings showed that the Federal Reserve System would continue to maintain higher interest rates for the near future.
Evidently, this has caused ripples in the market, leading to negative reactions from participants. Although the technical outlook for the asset has shown a decline in accumulation, indicators remain positive about Bitcoin’s price for the next trading sessions. The daily chart suggests that BTC will recover in the next trading session.
Bitcoin is holding steady at $16,600. At the moment, Bitcoin’s price is stable and major altcoins are following the same price path. BTC lost 0.6% over the last 24 hours. Bitcoin’s current price is currently trading at a 76% discount to its 2021 high. Bitcoin’s market capitalization decreased slightly, which suggests that sellers were more popular than buyers at press-time.
One-Day Chart: Bitcoin Price Analysis
BTC traded at $16,700 as of the writing. Although the coin has recently fallen below the $16,800 support level, it is not likely to lose much longer-term value as BTC will soon begin recovery.
BTC can be pushed by buyers to rise above $16,800. This indicates that the overhead resistance of the coin was $16,900.
Clearing the $16,900 price threshold will open the door to $17,000. On the other hand, if demand doesn’t show up immediately, BTC could retrace further to sit at $16,600 before it starts to move northward again. There was a slight bearishness in the BTC volume traded during the previous session.
Technical Analysis
The technical outlook for Bitcoin prices has remained positive despite a drop in buyers. Relative Strength Index showed a decline, which suggested that buyers are slowly leaving the market. However, Bitcoin showed a positive sign in the daily chart.
The asset’s price was higher than the 20-Simple Moving Average (SMA) line, which indicated that buyers had the advantage in driving market price momentum. The 50-SMA (yellow), was also below the 20-SMA(red). This is a golden cross pattern, which is formed before the coin begins a rally.
Bitcoin price displayed a buy signal on its daily chart in accordance with the incoming bullish strength. The Moving Average Convergence Divergence (MACD) indicated price momentum. It showed green signal bars.
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These bars were buy signals that indicated that the asset’s price was likely to rise. Bollinger Bands are a visual representation of volatility and future fluctuations in the price. The bands were tightly squeezed, which indicated a sharp price turn and potential trading opportunities for traders.
Featured image from UnSplash. Charts from TradingView