Bitcoin hits new 2022 low, outlook remains negative on expectations of aggressive Fed
The Bitcoin hit new 2022 on Monday, extending a steep fall into fifth straight day.
Last week action closed with over 9% loss and generated additional negative signal on completion of weekly bearish engulfing pattern.
Expectations for another large Fed rate hike (0.75% is widely expected, though some economists bet for 1% raise) keeps bitcoin under increased pressure.
Today’s dip to new annual low (18242) was so far short-lived as the price bounced, but upticks were limited, as overall structure is bearish and sentiment is negative.
Monthly chart shows that that larger bears off a record high at 68911 (Nov 2021) struggle at pivotal Fibo support at 19143 (76.4% of 3770/68911, Mar 2020/Nov 2021 rally), lacking a clear break lower for the fourth consecutive month.
Eventual clear break here and also through the base that was forming in past 3 ½ months at 18500 zone, would signal a continuation of a larger downtrend and unmask targets at 13207 (Nov 2021 low); 12270 (100MMA) and open way for test of psychological 10000 support on stronger acceleration.
Technical studies are in bearish setup, with fresh negative signal seen on formation of 20/200WMA death-cross.
Falling daily Tenkan-sen (20508) should keep the upside protected, to maintain negative bias.
Res: 19790; 20025; 20280; 20508
Sup: 19143; 18512; 18242; 17540
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Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
