Bitcoin September 21, 2022 – Taken Down by the Dollar
A support to break – The price of Bitcoin (BTC) could once again close this day below $19,000, with a clear win for the greenback over risky assets.
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FOMC and uncertainty for Bitcoin price
Bitcoin price rises as high as $19,888 on Bitfinex today, September 21, 2022, before falling back to $19,000. Cryptocurrency trades at $18,903 at the time of writing this article. Markets are currently entitled to one doji on a daily basis.
Bitcoin therefore approached $20,000, before almost returning to its opening level below $19,000, as the day was marked by the FOMC’s announcement of an interest rate hike of reference to the United States, 75 basis points.
The announcement seems to have benefited the dollar (DXY), which currently stands at 111.32, to the detriment of risky assets. The DXY hits a 20-year high as uncertainty currently reigns in BTC markets on a daily basis.
A horizontal support to break to welcome spring
While a breakout of support around $18,700 can bring Bitcoin price back to this year’s low reached last June, such a drop, which would penalize some traders in the short term, could be necessary to finally see the start of a recovery. a truly sustainable bullish recovery.
Analyst Matthew Hyland indeed shared a three-day chart of Bitcoin price, while pointing out that “the previous two bear markets” ended with “ the failure of a horizontal support over several months. In 2014, this support was around $320, compared to $6,100 in 2018, and possibly the $18,980 this year.
If this breakout of levels below $19,000 indeed signaled the end of bear markets, referring to a late August post from Whalemap, the concentration of whales around $16,500 could theoretically serve as support and constitute the bottom of the cycle.
In the event of a break of this theoretical support, this bottom could then be located near $13,500, according to this whale chart.
At the moment, the bulls lack strength for a bullish rebound above $20,000. In the event of a crash below $19,000, the markets will be hoping that the next hemorrhage in the markets will this time herald the end of the crypto winter and the gradual return of good weather.
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