Bitcoin price experienced a bullish move for about a week starting on July 13. Now, it is experiencing an increase in selling activities leading to a pullback in price. Now, BTC has reached a level that will determine its fate and perhaps the trend for altcoins. However, technical indicators paint an ‘undecided’ picture of the market. This is largely due to the Fed meeting, which is expected to take place on July 27.
The current behavior of the market makes sense given previous rate hikes. As we reported on cryptokoin.com, past interest rate hikes have often led to a crash in cryptocurrency prices. On July 13, 2022, the FED had increased interest rates by 75 basis points. Subsequently, the BTC price dropped by 5%. However, Bitcoin managed to trigger a one-week rally that pushed it from $19,000 to $24,000. Thus, it finally offset its short-term losses. That’s why investors need to pay close attention to how the markets will react on July 27.
Bitcoin price is on the verge of a breakout
Bitcoin price produced a daily candle close below the 200-week SMA on July 22. This development indicates a weakness among buyers. Since then, BTC has dropped 4% and is currently hovering around $21,943. Regardless of this drop, the bulls have a chance to rebound as the 30-day Exponential Moving Average (EMA) is located at $22.010. However, the presence of the 100 four-hour Simple Moving Average (SMA) at $21,562 also increases the chances. Investors can expect volatility as the Fed steps in to raise interest rates another 75 basis points. A short correction to $21,710 can be expected. But a quick recovery is bound to feel bullish.
A bounce from the above-mentioned level means a 15% rally. This rally holds upside potential to the $25,000 level. This level forming a local top is higher than the current local top of $24,276. However, traders should keep their minds open for this move to be extended into the $28,000 to $30,000 area in case of a strong upside. On the other hand, it is possible for bitcoin price to drop below the $21,710 support confluence. There is a good chance for BTC to revisit the $19,657 support level. Breaking this level will show BTC retesting the liquidity pool from $18,638 to $19,286. In some cases, a low range sweep of $17,605 is also likely.
Analyst commented on BTC price
Chris Burniske, former crypto analyst at ARK Invest, commented on the price of Bitcoin. Burniske examined the weekly charts of Bitcoin (BTC) and Ethereum (ETH). Thus, he concluded that the market, which has recovered from a prolonged correction in recent weeks, is still not in a favorable state. According to the analyst, BTC just caught the 200-week moving average. Moreover, its failure to surpass this level has left the crypto market at a crossroads: bullish or temporary defeat. Burniske said we apparently made a fake debut and should wait for a coup. Thus, he summarized his current views on the market.
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