In this episode of NewsBTC’s daily technical analysis videos, we look at the volatility in Bitcoin price action following the FOMC meeting today where the Federal Reserve announced a 75 bps rate increase.
Take a look at the video below:
VIDEO: Bitcoin Price Analysis (BTCUSD): September 21, 2022
Bitcoin price action has been ultra volatile before and after the United States Federal Reserve announced its decision to increase rates by 75 basis points. Although the market had been considering as much as a 100 basis points increase from the increasingly hawkish Fed, the central bank ultimately chose a slightly softer touch.
Fed Chair Jerome Powell expects rate increase to continue well into next year, with inflation not returning to the normal 2% rate until at least 2025.
Crypto Market Gets Volatile Before & After Fed Rate Hike Decision
To demonstrate the incredibly powerful volatile proper to the announcement, Bitcoin plunged by 6% in only one minute of trading. Less than an hour later, the top cryptocurrency retraced almost the entire move, yet is now struggling to keep its head above $19,000 support.
Not just Bitcoin, but anything that trades against the dollar moved in a similar manner.
Bitcoin price plunged 6% in a single minute of trading action today | Source: BTCUSD on TradingView.com
TD9 Buy Signal Appears On Bitcoin, But Beware Of Another Low
The Bitcoin daily is working on a TD9 buy setup. Beware of the series perfecting, which requires a lower low beyond $18,300 where bull staged a defensive move earlier this week.
A TD9 buy setup has triggered on the daily, but another low makes perfect | Source: BTCUSD on TradingView.com
Related Reading: WATCH: Bitcoin Bloody Monday Leads To Reversal Hammer | BTCUSD September 19, 2022
Tug-of-War On Weekly Timeframes Between Bears And Bulls
Bitcoin briefly pushed back into bull territory on the weekly LMACD histogram. A bullish crossover at these levels on weekly timeframes has led to a bottom being put in in the past. Cyclically, it is clear that this is a level to watch for a bullish reversal.
By the time we finished the video above, Bitcoin plunged back down to the below the $19,000 level and bears successfully uncrossed the LMACD crossover yet again. A tug of war is going on, and whoever wins will have the upper hand when it comes to momentum.
Bears continue to prevent a bullish crossover, but bulls are trying | Source: BTCUSD on TradingView.com
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Featured image from iStockPhoto, Charts from TradingView.com
