Bitcoin Price Struggles to Break $70K: Recovery Hindered by Post-Fed Reactions
Bitcoin’s price made a strong push above $68,500 and even tested the $70,000 mark. However, following the Federal Reserve’s decision to keep interest rates at 5.5%, the cryptocurrency faced a significant bearish reaction.
As a result, the price declined below $68,800 and $68,500, eventually finding support around the $67,200 zone. Currently, Bitcoin is consolidating its losses near the 23.6% Fibonacci retracement level, which measures the downward movement from the swing high of $69,969 to the low of $67,148.
The hourly chart of the BTC/USD pair on Kraken shows that Bitcoin is now trading below both $68,800 and the 100 hourly Simple Moving Average. However, there is a positive sign in the form of a connecting bullish trend line with support at $67,500.
On the upside, the cryptocurrency faces resistance near the $68,250 level, followed by major resistance at $68,550, which corresponds to the 50% Fibonacci retracement level. If Bitcoin manages to surpass these levels, it could aim for $69,200 and even test the crucial $70,000 resistance. Further gains might push BTC toward the $71,200 resistance.
However, if Bitcoin fails to break above the $68,550 resistance, it may experience further declines. The immediate support lies around the $67,200 level, with major support at $67,000. Should the downward momentum persist, the next support is forming near $66,000, with further losses potentially leading to the $65,500 support zone.
As for the technical indicators, the hourly MACD is showing a slowdown in the bearish zone, while the hourly RSI for BTC/USD is currently below the 50 level.
In summary, Bitcoin’s attempt to surpass $70,000 was met with resistance following the Federal Reserve’s announcement. The cryptocurrency’s price is now struggling to regain momentum, and further declines could be on the horizon if it fails to break key resistance levels.