Bitcoin price faced sellers after the fed interest rate decision. BTC/USD broke a major support and might accelerate lower towards $17,600.
Bitcoin Price Takes A Hit
This past week, bitcoin price failed to gain pace for a move above the $20,500 resistance zone. The BTC/USD pair started a slow and steady decline below the $20,000 level.
Recently, the fed announced interest rates and raised it to 3.25%. It sparked a bearish wave and the price declined below the $19,000 support. Besides, altcoins such as ethereum saw a major drop below the $1,300 support, where xrp price climbed higher and revisited the $0.425 resistance.
Bitcoin 4-hours chart | Source: BTCUSD on TradingView.com
During the decline, there was a clear move below the 76.4% Fib retracement level of the upward wave from the $18,550 swing low to $22,795 high.
The price even settled below the $19,000 level and the 50 simple moving average (4-hours, blue). The bulls are now protecting the $18,400 support zone. If they fail to protect the $18,400 zone, there could be another sharp decline.
An initial support sits near the $18,400 level. The first major support is near the $18,260 level. A clear move below the $18,260 support could spark another sharp decline. In the stated case, the price may perhaps test the $17,500 support.
It is near the 1.236 Fib extension level of the upward wave from the $18,550 swing low to $22,795 high. On the upside, an immediate resistance is near the $19,500 level.
There is also a major bearish trend line forming with resistance at $19,600 on the 4-hours chart. A clear move above the $19,600 resistance might open the doors for a fresh increase. The next key resistance might be near the $20,400 level, above which it might even the $21,000 resistance. Any more gains could set the pace for a test of the $22,500 resistance.
Overall, bitcoin price is trading well below the $20,000 pivot zone. If the bears remain in action, the price may perhaps drop towards the $17,500 support. Conversely, the price might start a recovery wave and revisit the $20,500 resistance.
The post Bitcoin (BTC) Price Just Signaled “Sell” And It’s Vulnerable to Test $17.5K appeared first on CoinChapter.