Fed Chair Could Trigger New Volatility

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Bit­coin price pre­dic­tions remain bear­ish after the price activ­i­ty failed to break the 21631 resis­tance lev­el on 21 June. This price rejec­tion left the bears in con­trol, and they decid­ed­ly drove prices down to the 20113 sup­port level.

What is cur­rent­ly hap­pen­ing is an ongo­ing, silent accu­mu­la­tion by the whales. Binance exchange was report­ed to have amassed more than 100,000 BTC at the cur­rent lows. It has also emerged that there has been an increase in the num­ber of large BTC hold­ers by 16%, accord­ing to data from IntotheBlock’s Twit­ter page. This accu­mu­la­tion is why fur­ther bear­ish Bit­coin price pre­dic­tions have not been achieved yet.

The recent capit­u­la­tion in BTC prices comes as cen­tral banks raise inter­est rates, dri­ving invest­ment flows from risky assets to mon­ey-mar­ket instru­ments. With Fed Chair Jerome Pow­ell due to pro­vide tes­ti­mo­ny on Wednes­day and Thurs­day before the com­mit­tees in the Sen­ate and House of Rep­re­sen­ta­tives over­see­ing the finan­cial mar­kets, we could see some volatil­i­ty in the BTC/USDT pair with­in the week.

Bitcoin Price Prediction

The 2‑hour chart shows that the price activ­i­ty has bounced off the 20113 price mark, where the 50% Fibonac­ci retrace­ment lev­el from the swing low of 18191 to the swing high of 21848 is found. This is expect­ed to be the sup­port for price action on the day. How­ev­er, the momen­tum must car­ry upwards to the descend­ing trend­line and breach it before the bulls can attain the 21631 resis­tance level.

A bull­ish out­side day can­dle must emerge to sup­port the evolv­ing bull­ish hara­mi can­dle if the price action is to sur­pass the 38.2% Fibonac­ci retrace­ment lev­el at 20560. The 23.6% Fibonac­ci retrace­ment lev­el at 21092 could also serve as a poten­tial pit­stop area on the way up. An addi­tion­al short-term resis­tance lev­el lies at 22680. 

On the oth­er hand, a break­down of the 20113 price sup­port allows the price action to test the 61.8% Fibonac­ci retrace­ment lev­el at 19701, where the low of the mid­night 2‑hour can­dle of 20 June resides. A fur­ther trip to the south brings 19090 into the mix, with this lev­el being the 78.6% Fibonac­ci retrace­ment lev­el. 18191 remains the next tar­get to the south, mark­ing the dou­ble bot­tom that sig­ni­fied the ral­ly point of 19 June fol­low­ing the test of this price level.

BTC/USDT: 2‑hour Chart

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