Bitcoin Price Eyes Fresh Upside Break After Fed Interest Rate Hike

Bitcoin price dipped a few points against the US Dollar after the fed rate hike. BTC remained supported and might eye a fresh increase above the $20,500 resistance.

• Bitcoin corrected further lower and tested the $20,000 support zone.
• The price is trading below $20,500 and the 100 hourly simple moving average.
• There is a major bearish trend line forming with resistance near $20,520 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could a fresh increase if it clears the 100 hourly SMA and $20,500.

Bitcoin price struggled to gain pace for a move above the $20,650 resistance. BTC reacted to the downside and traded below the $20,400 level after the fed rate hike of 0.75 bps.

The price declined below the $20,250 support level and traded close to the $20,000 level. A low was formed near $20,059 and the price is now correcting losses. There was a move above the $20,250 level. The price climbed above the 23.6% Fib retracement level of the recent decline from the $20,864 swing high to $20,059 low.

Bitcoin price is now trading below $20,500 and the 100 hourly simple moving average. There is also a major bearish trend line forming with resistance near $20,520 on the hourly chart of the BTC/USD pair.

On the upside, an immediate resistance is near the $20,370 level. The first major resistance sits near the $20,450 level. It is near the 50% Fib retracement level of the recent decline from the $20,864 swing high to $20,059 low. The main hurdle is near the trend line, $20,500, and the 100 hourly simple moving average.

Source: BTCUSD on TradingView.com

A clear move above the $20,500 zone could send the price further higher. The next major resistance is still near $21,000, above which the price may perhaps start a steady increase.

If bitcoin fails to clear above the $20,500 resistance zone, it could resume its decline. An immediate support on the downside is near the $20,200 zone.

The next major support is near the $20,050 zone. The main support is now near $20,000, below which there is a risk of a sharp decline. In this case, the price may perhaps decline towards the $19,200 level.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now near the 50 level.

Major Support Levels – $20,200, followed by $20,000.

Major Resistance Levels – $20,370, $20,450 and $20,500.