BTC/USD Technical Analysis
On the daily chart below, we can see that the Bitcoin price rejected the summer 2022 high of 24245. The crypto market is primarily driven by risk sentiment, and recent developments in interest rates may be a headwind for the market.
We recently saw a drop, but the main event will be the US CPI report next week. If that exceeds expectations, we should see a significant risk-off sentiment kick in, sending the price of Bitcoin significantly lower. The first level of support for a larger sell-off is at 18152. Buyers, on the other hand, will need to break through the resistance around the 25K mark to start looking for higher highs.
The price was diverging with the MACD trading into the resistance at 24245. That indicated a weakening upward momentum, and recent fundamental catalysts did the rest to push the price lower. The moving averages are currently pointing south, and sellers would prefer a pullback into the swing resistance at 22366.
As there is a good confluence into the same level, we can see where the sellers may start to pile in. The swing resistance, the 38.2% Fibonacci retracement level, and the trendline all meet at the 22366 price level. From a risk management standpoint, that would be an excellent level to lean on and place stops above the trendline and 50% or 61.8% Fibonacci levels.