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BTC Price Analysis: BTC/USD Returns Above $20K as Markets Calm Down After Losses

Filecoin
  • BTC started to rebound after the CPI revealed US inflation had reached a fresh 40-year high
  • BTC has returned above $20,000 after climbing over the past three days
  • Market sentiment temporarily improved as investors scaled back expectations of an aggressive rate hike

Cryptocurrency prices are rising at the end of the week, trying to recoup last week’s losses after a worrisome crypto market outlook. Investors who had previously felt that the price of Bitcoin was on the rise became uneasy after it lost its footing above $20,000 at the beginning of the week. However, BTC started to rebound after the CPI revealed US inflation had reached a fresh 40-year high. Market sentiment temporarily improved as investors scaled back expectations of an aggressive rate hike by the Fed to fight inflation. At the time of this analysis, the price of BTC has returned above $20,000 after climbing over the past three days. Bitcoin now trades at $20,839 according to data from CoinMarketCap, up 5.15 percent in the last 24 hours after reaching an intraday high of $21,196.

Key Levels
Resistance Levels: $28,000, $25,000, $22,000
Support Levels: $20,000, $17,500, $15,000

BTC/USD Daily Chart: Bearish

BTC/USD Daily Chart

Since bouncing off the weekly support of $18,892, BTC/USD has continued higher for the third day in a row, trading as high as $21,196. The initial downside is supported by the June low of $17,567. The June lows, which are below the current market price, provide the first major support. With a 5.15 percent daily increase, Bitcoin gradually raised its price above the $20,000 key level.

According to the chart, the immediate resistance is $22,000, and should it be broken, a new retest of $22,490 may be possible. Higher resistance levels emerge from outside of the descending channel, which opens the way for prices of $25,000, and $28,000. It is appropriate to note that level $20,000 is a major support level and that level $17,567 is next.

BTC/USD 4-Hour Chart: Ranging

BTC/USD 4-Hour Chart

The analyzed indicators, such as the RSI, MA 50, and MA 200, provide a favorable short-term outlook. The RSI is heading north following the recovery from the low. If the rally intensifies, BTC bulls may gather enough momentum to expand the rebound and position sizes in preparation for a possible break of the $22,000 barrier.

As the bears lose strength, Bitcoin continues to gain intraday value. BTC/USD is moving up from its key support level of $20,000 toward the $22,000 area. The short-term trend of BTC/USD is ranging. Retesting the previous near-term low at $19,692 may be inevitable when price retrace, however doing so beneath the moving averages may be dangerous.

Note: Kryptomoney.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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