Bitcoin Price Rally Post Fed Rate Hike Could Gather Momentum, Here’s Why

Bitcoin price is rising and gaining pace above the $23,500 resistance. BTC climbed to a new yearly high after the fed increased rates by 25bps.

• Bitcoin is up over 3% and there was a clear move above the $23,800 resistance.
• The price is trading above $23,500 and the 100 hourly simple moving average.
• There was a break above a major bearish trend line with resistance near $23,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could rally further if it stays above the $23,500 support zone.

Bitcoin Price Rips Higher

Bitcoin price formed a base above the $22,500 support zone. BTC started a fresh increase and was able to clear the $23,200 resistance zone. Later, the fed announced a small rate hike as expected, sparking bullish moves in btc.

The price gained pace for a move above the $23,500 resistance. There was a break above a major bearish trend line with resistance near $23,100 on the hourly chart of the BTC/USD pair. It even pumped above the $24,000 resistance zone and traded to a new yearly high at $24,282.

It is now correcting gains and traded below $24,000. There was a move below the 23.6% Fib retracement level of the upward move from the $22,753 swing low to $24,282 high.

Bitcoin price is now trading above $23,500 and the 100 hourly simple moving average. An immediate resistance is near the $24,100 level. The next major resistance is near the $24,250 zone. A clear move above the $24,250 resistance might send the price further higher.

Source: BTCUSD on TradingView.com

In the stated case, the price may perhaps rise towards the $25,000 level. The next resistance could be near the $25,500 level followed by $26,200.

Dips Attractive in BTC?

If bitcoin price fails to clear the $24,250 resistance, it could start another downward move. An immediate support on the downside is near the $23,650 zone.

The next major support is near the $23,500 zone or the 50% Fib retracement level of the upward move from the $22,753 swing low to $24,282 high. A downside break below the $23,500 level might send the price towards the $23,000 level. Any more losses might send the price to $22,500 in the near term.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $23,650, followed by $23,500.

Major Resistance Levels – $24,100, $24,250 and $25,000.

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