BTC Hits Lowest Closing Price Since Jan 2022, How Low Can It Go?

• After a brief reactionary rally to the sharpest interest rate hike since 2000, Bitcoin dropped almost 10% over the past 24 hours as it reached the lowest daily closing price since January 2022
  
• The price capitulation caused BTC to break beneath a rising trend line as it plummeted into support at $35,650 (downside 1.414 Fib Extension)
  
• The break of critical support is gruesome for the market as analysts expect further declines toward the 2022 lows around $32,900 next
  

Looking at the daily chart, we can clearly see the devastation caused by yesterday’s sell-off. Prior to the capitulation, BTC found support at a rising support trend line just beneath $38,000. This trend line sits parallel to the previous price channel BTC was trading inside for the majority of 2022.

Following the 0.5% interest rate hike on Wednesday, BTC witnessed a reactionary rally that saw it climb to $40,000. In addition, the move allowed the market to print a bullish engulfing candlestick pattern, which is usually a strong signal for a potential reversal.

However, the bears quickly returned to the market and dealt a crushing blow as they caused BTC to sink from $40,000 and smash beneath the rising support trend line.

After breaking the support, BTC continued to sink further as it broke beneath $37,000 and reached as low as $35,650 (downside 1.414 Fib Extension). It did bounce from this support to close the daily candle at $36,530, but the sellers have resumed their downward pressure as they test $35,650 at the time of writing.

How low can Bitcoin go?
The big question that most will have right now is how low can Bitcoin go from here?

Although it is difficult to tell right now, the major support that everybody has their eye on is the 2022 lows of around $32,900. However, many analysts are turning extremely pessimistic and are projecting drops beneath $30,000.

Before the 2022 lows, the first major level of support lies at $35,650 (downside 1.414 Fib Extension). This is followed by support at $34,985, which provided strong support for the market during January 2022.

To read more about what the charts are suggesting for Bitcoin and for a fundamental overview of the current market state, read the original article posted on CoinCodex: coincodex.com/articl...2-how-low-can-it-go/