FX.co ★ Technical Analysis of BTC/USD for September 22, 2022

Crypto Industry News:

Unsurprisingly, the Fed raised rates by 0.75% again, reassuring those who feared a 1% rate hike, but not preventing a bearish reaction to risk assets, including cryptocurrencies.

The largest digital asset in the market by capitalization indeed fell to its lowest level in more than three months after the Fed decision, reaching a low of around $ 18,200.

Let us remember that the Fed's rate hike was accompanied by hawkish details, especially with regard to the FOMC members' rate forecasts outlined in the dot plot. The forecasts suggest that the Fed will raise rates by another 1.25% by the end of the year. Considering that 2 more meetings will be held by the end of 2022, rate hikes by 0.75% and then 0.50% are the most likely scenario.

In addition, Jerome Powell maintained a largely hawkish tone in his press conference, leaving no doubt that the Fed will continue to fight inflation until it is brought under control.

Technical Market Outlook:

The BTC/USD pair has made a new marginal swing low at the level of $18,142 after the FED decided to deliver the interest rate hike to the level of 3.25%. Currently the market is trying to bounce from the extremely oversold market conditions on the H4 time frame chart, so the nearest technical resistance is seen at the level of $19,347 and $19,679. The weak and negative momentum on the H4 time frame chart still supports the short-term bearish outlook towards the level of $17,600 again, but any breakout above the descending trend line will be considered bullish.

Weekly Pivot Points:

WR3 - $21,295

WR2 - $20,039

WR1 - $19,341

Weekly Pivot - $18,764

WS1 - $18,064

WS2 - $17,526

WS3 - $16,271

Trading Outlook:

The down trend on the H4, Daily and Weekly time frames continues without any indication of a possible trend termination or reversal. So far every bounce and attempt to rally is being used to sell Bitcoin for a better price by the market participants, so the bearish pressure is still high. The key long term technical support at the psychological level of $20,000 had been violated, the new swing low was made at $17,600 and if this level is violated, then the next long-term target for bulls is seen at $13,712. On the other hand, the gamechanging level for bulls is located at $25,367 and it must be clearly violated for a valid breakout.