Bitcoin (BTC) Plummets As U.S. Fed Powell Warns Hike in Interest Rate 

BTC technical analysis shows how Bitcoin prices reach the psychological mark of $20K with a 6% drop. Will the increased fear in the global market bring Bitcoin below this year’s low of $17600? With the 6% drop last night, the Bitcoin (BTC) prices plunge to the crucial support of $20K. And the increased supply warns of a further downfall to the $18,850 mark. So will this high-momentum selling spree result in a drop to $15K, or will the price bounce back from the $18,850 mark?

Key Points:

• The BTC price action displays a bearish engulfing candle completing a post-retest reversal from the $21,875 resistance level.
• The downtrend has the potential to break the $18,850 demand barrier.
• With a market cap of $385 billion, the intraday trading volume of Bitcoin has increased by 41% to reach $43.88 billion.

Source- Tradingview

BTC Technical Analysis

Bitcoin (BTC) prices plummeted 6% overnight in response to Jerome Powell’s hawkish comments, resulting in a 1000-point drop in the U.S. market. However, the correction rally is suspected of continuing in the coming week as the selling pressure grows. With the Asian market expecting a gap down next week, investors may become more fearsome, liquidating their crypto funds. In such a case, a downfall in Bitcoin can break this year’s crucial support level of $18,850. Currently, the price action displays a bearish engulfing candle testing the buyers at the $20K psychological barrier. But the downtrend is expected to reach the $18,850 level, bringing short-term selling opportunities for sideline traders. If the $18,850 support level sustains this weekend, the BTC prices may grow back to $21,875 to survive the coming downfall after Powell actually increases the interest rate. However, the breakout of this year’s low will result bring Bitcoin to the $15,000 mark.

Technical Indicators

The RSI slope indicates the Bitcoin is oversold, as with the MACD and signal lines gaining a bearish gap as the negative histograms intensify. Furthermore, the Fear and Greed index reflects the market conditions deteriorating as the Fear grows.  Source — Fear & Greed Index Hence, the dangerous possibility of BTC prices reaching the $15K mark this year is rapidly increasing. Resistance Levels: $21,875 and $25,000 Support Levels: $20,000 and $18,850

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