Bitcoin price witnessed a massive hit after the latest upside, in news and technical analysis. The latest market news of the United States Fed resorting to another massive hike in the coming month to combat escalated inflation saw BTC on a 7.3% intraday loss.
Furthermore, the asset’s chart displayed a bearish wedge setup, which catalyzed the decline within the past five days, translating to a 12% overall drop. How low will this pattern lead Bitcoin’s price?
Vital Points
- Bitcoin price has seen a downside spree for the last five days.
- The 20 and 50-day Exponential Moving Averages display a bearish crossover.
- Bitcoin’s intraday trading volume is $35.5B, suggesting a 38.7% loss.
On technical analysis, the sell-off within the market highlights the phrase that history repeats itself. Further analysts had observed a rising wedge setup for the world’s largest crypto, BTC. This setup has appeared twice since the November declines and crashed BTC by 30% to 40%.
Thus, the 17 August sessions saw prices reverting from the $24,500 local high, breaching the setup’s support trendline. The after-retest decline saw the prices dropping 8%, currently changing hands at $21,515.
Meanwhile, the cryptocurrency market saw a substantial sell-off on Friday after Fed official James Bullard highlighted a massive 75bp rate increase next month. That saw Bitcoin plunging lower, recording a decisive move beneath the support level at $22,580.
Analysts trust an expected candlestick closing beneath $22,580 might see Bitcoin price reverting higher towards the value area. However, a detailed retest might see the asset flipping the foothold into resistance. That would trigger more selling, taking Bitcoin towards $20,770.
Moreover, Bitcoin could extend lower. Following the pessimistic continuation formation would welcome another 12% price drop, dragging the crypto to the support at $19,000.
Technical Indicator
- Exponential Moving Averages
The coin’s price chart reveals bearish alignments in crucial exponential moving averages as the declining prices moved beneath the 20 and 50-day EMAs. Meanwhile, negative crossovers between the slopes might draw more sellers into the marketplace.
- Relative Strength Index
The daily Relative Strength Index (RSI) slope formed a swift decline beneath the midline, confirming dominating bearish sentiment.
Support areas – $22,070, $19K
Resistance areas – $22,580, $26.5K
