Price of Bitcoin Falls After Fed Decision, $24K Next? |
Posted: June 16, 2023 |
As the Federal Reserve announced its interest rate decision, Bitcoin's price plummeted further, now perilously close to breaking below the $24,000 support zone. The cryptocurrency had been gaining bearish momentum for some time prior but failed to maintain a positive trend after the Fed's decision.
Bitcoin is trading below both $25,500 and the 100 hourly simple moving average indicating that there may be more losses ahead. On top of this, a key rising channel with support near $25,800 on the hourly chart of the BTC/USD pair from Kraken has been broken.
This price decline follows an unsuccessful attempt by BTC to increase above the $26,200 resistance zone. Since then it has continued moving downwards and broke past another important support level at $25,400 - hitting a new low for the week. The currency currently sits around its most recent bottom at around $24,818 consolidating losses.
Technical indicators suggest that immediate resistance lies near levels just above where Bitcoin is currently trading ($25,200). Major resistance levels follow at both $25,500 (which coincides with a major Fib retracement level) and finally at $26k.
If this series of resistances cannot be overcome soon, we could see more significant downward pressure with immediate support on hand around current market pricing ($24.8k) followed by potential further drops toward intermediary supports found nearer $24.5K.
While these technical observations give insight into possible future trends for Bitcoin. Generally, they can never be exact or reliable figures as movements take place entirely based on supply/demand interactions rather than being based solely on automated predictive algorithms.
In crypto, there is a mixture of hope & anxiety about what the future holds. As Bitcoin investors acknowledge, all markets can have periods of declining fortunes regardless of larger trends; it is unclear whether this will continue to be steeper for Bitcoin or the market as a whole.
Despite these potential negatives that come with investing in crypto, many young people are drawn to cryptocurrencies like Bitcoin because they provide an opportunity for anyone who's web-savvy enough to invest and partake in their movements. This gives them some degree also control within traditional financial systems.
While there remains much speculation around BTC's position following its recent losses so far, cryptocurrency development hasn't been consistent in any way.
The Kingpin of cryptocurrencies may not be as stable as it once was, leaving seasoned investors anxious and newbies perplexed. But what is the reason for this plunge in value?
For one, experts have long warned against putting all eggs in one basket by investing too heavily in cryptocurrencies due to their fundamentally volatile nature; there certainly have been no shortages of stories from unlucky victims who thought they could cash in on crypto without any losses.
This has led to numerous scams over time - so much so that unsuspecting individuals end up losing significant sums overnight due to frauds running rampant across these markets.
Despite all these risks surrounding digital currencies' investments, some think Bitcoin has an optimistic future ahead of itself. There remain those who believe that decentralized currency systems hold vital appeal in our society—systems disenfranchised by traditional financial institutions dominated by banks and policymakers- who perceive crypto as a way out of such domination.
While currently hovering around $24k levels – far off its historic highs of nearly $67k achieved years ago – its supporters continue to support it because of its potential benefits over traditional money.
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