The Bitcoin hit the lowest in 18 months on Tuesday, in extension of Monday’s 15% drop, following weekly gap-lower opening and subsequent acceleration lower.
Crypto’s remain under pressure from Fed rate hikes, while the latest US inflation report showed that prices continue to rise that fuels expectations on more aggressive action from the US central bank on Thursday’s policy meeting (economists rise bets for 0.75% hike vs initially expected 50 basis points raise) that would add to the pressure.
Psychological 20k support and Fibo level at 19143 (76.4% of 3770/68911 rise) are in focus, but bears are likely to face strong headwinds at this zone, as daily studies are oversold and cracked 200WMA (22267) also obstructs bears , with failure to close below the indicator to signal that bears are running out of steam.
Overall structure remains firmly bearish, with profit-taking ahead of key supports, to give larger bears time to consolidate.
Fibo levels of the latest downleg from 31702 at 23345(23.6%) and 24942 (38.2%) offer solid resistances, while lift above 50% retracement (26233) would sideline immediate bears for possible stronger correction.
Res: 23345; 24942; 25223; 26233
Sup: 20763; 20000; 19143; 17540
