Bitcoin lost 29,000 support in a weekly timeframe and faced heavy selling pressure, driven by the announcement of the highest inflation rate in the last 40 years in the United States, which not only caused the crypto market to fall, but also the stock market to fall.
Given this market reaction before the Fed meeting to announce an interest rate increase of 0.5 or 0.75 percent to be held tomorrow, it remains to be seen how much the Fed will increase interest rates and reduce the balance sheet.
If the contractionary policies continue, Bitcoin will not have significant support up to the 19000 area, and as can be seen in the weekly timeframe chart, the 19000 area is a strong level of support both statically and dynamically. And if we do not consider this area as a bitcoin floor due to the not-so-favorable economic situation in the United States, we should at least expect a strong reaction to this area.
Given this market reaction before the Fed meeting to announce an interest rate increase of 0.5 or 0.75 percent to be held tomorrow, it remains to be seen how much the Fed will increase interest rates and reduce the balance sheet.
If the contractionary policies continue, Bitcoin will not have significant support up to the 19000 area, and as can be seen in the weekly timeframe chart, the 19000 area is a strong level of support both statically and dynamically. And if we do not consider this area as a bitcoin floor due to the not-so-favorable economic situation in the United States, we should at least expect a strong reaction to this area.
Comment:
Certainly tonight's Fed meeting to announce an interest rate increase of 0.5 or higher could determine the next move of the market, but technically currently the 20,000 area, which is psychologically supported, has saved profits and eased sales pressure, and we can expect the market to grow. They are also waiting for the outcome of tonight's meeting because a large amount of bitcoins (about 150,000 bitcoins 😳) have entered the exchanges in the last two days, but we do not know how many of them have been sold or turned into other tools or to create more fear. In the market (fear and greed index has fallen below 10)
On the other hand, after announcing the inflation rate during the last week and the contractionary expectations that followed the Fed's behavior and the opinion of many analysts and institutions on raising the interest rate by 0.75, apparently the sales pressure caused by this data has been applied in the market and can not be expected higher. Announcing an interest rate of more than 0.5% again puts such selling pressure on the market, but if this rate remains stable, it can be a stimulus to react to the weekly bullish trend line that coincides with the interval shown in the chart and according to this time analysis. Which is done by Miner method in linear chart, the market can change the trend from these areas.
In terms of value, the value indicators of the price of $ 24,000 bitcoin are considered valuable, and considering the losses that investment companies have been placed in and miners who are not willing to sell at these prices, one can expect more market support.
Given the above conditions, I expect the announcement of interest rates by the Fed to create a temporary excitement in the market and have a temporary decline to the level of 19000 or even lower, and by creating a shadow to liquidate long trades, react to the weekly trendline. And see the static support areas and complete it in time for the price to return
@MrHunterCrypto