- BTC started to rebound after the CPI revealed that US inflation hit a new 40-year high
- BTC is back above $20,000 after climbing over the past three days
- Market sentiment temporarily improved as investors lowered expectations of an aggressive rate hike
Cryptocurrency prices rise at the end of the week, trying to recoup last week’s losses after a worrying outlook for the crypto market. Investors who previously believed that Bitcoin price was on the upside became concerned after it lost its footing above $20,000 at the start of the week. However, BTC started to rebound after the CPI revealed that US inflation hit a new 40-year high. Market sentiment temporarily improved as investors lowered expectations of an aggressive rate hike by the Fed to fight inflation. At the time of this analysis, the price of BTC has moved back above $20,000 after climbing for the past three days. Bitcoin is now trading at $20,839 according to data from CoinMarketCapup 5.15% in the past 24 hours after hitting an intraday high of $21,196.
Resistance levels: $28,000, $25,000, $22,000
Support levels: $20,000, $17,500, $15,000
BTC/USD Daily Chart: Bearish
BTC/USD daily chart
Since bouncing off the weekly support of $18,892, BTC/USD has continued to rise for the third day in a row, trading as high as $21,196. The initial decline is supported by the June low of $17,567. The June lows, which are below the current market price, provide the first major support. With a daily increase of 5.15%, Bitcoin gradually increased its price above the key $20,000 level.
According to the chart, the immediate resistance is at $22,000, and should it be broken, a retest of $22,490 might be possible. Higher resistance levels emerge from outside the descending channel, which paves the way for prices at $25,000 and $28,000. It should be noted that the $20,000 level is a major support level and the $17,567 level is next.
BTC/USD 4-Hour Chart: Going
BTC/USD 4 hour chart
The indicators analyzed, such as the RSI, MA 50 and MA 200, offer favorable short-term prospects. The RSI is heading north following the recovery from the bottom. If the rally intensifies, BTC bulls could gain enough momentum to extend the rebound and position sizes for a possible breakout of the $22,000 barrier.
As the bears lose strength, Bitcoin continues to gain intraday value. BTC/USD is moving from its key $20,000 support level to the $22,000 area. The short-term trend of BTC/USD varies. Retesting the previous short-term low at $19,692 may be unavoidable when prices retrace, but doing so below the moving averages can be dangerous.
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