BTC and ETH Returns to $18,500 and Sub-$1,200 in the Hands of the Fed

Key Insights:

• A bearish Wednesday session saw bitcoin (BTC) and ethereum (ETH) fall for a second consecutive session.
• BTC and ETH came under selling pressure as investors responded to UK and Eurozone inflation numbers and Fed chatter through the US session.
• The technical indicators remain bearish, with Fed fear leaving the crypto market on the back foot.

On Wednesday, bitcoin (BTC) fell by 1.04%. Following a 1.13% loss on Tuesday, BTC ended the day at $19,132. Notably, BTC fell short of $20,000 for the twelfth consecutive session while avoiding a return to sub-$19,000 for a fourth session.

A mixed start to the day saw BTC rise to an early morning high of $19,361. Coming up short of the First Major Resistance Level (R1) at $19,662, BTC slid to an early afternoon low of $19,081. However, steering clear of the First Major Support Level (S1) at $19,053, BTC revisited $19,300 before falling back into the red.

Ethereum (ETH) fell by 1.98%. Following a 1.58% decline on Tuesday, ETH ended the day at $1,285.

Tracking the broader market, ETH fell from an early morning high of $1,314 to a late afternoon low of $1,280. ETH fell through the First Major Support Level (S1) a $1,285 before ending the day at $1,285.

External market forces weighed on BTC, ETH, and the broader crypto market. Inflation numbers from Europe and hawkish Fed chatter left the NASDAQ 100 and the crypto market in negative territory.

This morning, the crypto market found brief relief, despite a 69.75-point fall in the NASDAQ 100 Mini. However, US economic indicators and Fed chatter could test buyer appetite later today.

Bitcoin (BTC) Price Action

At the time of writing, BTC was up by 0.04% to $19,139. A bearish start to the day saw BTC slide to an early low of $18,900 before striking a high of $19,220.

BTC fell through the First Major Support Level (S1) at $19,022 and the Second Major Support Level (S2) at $18,911 before steadying.

Technical Indicators

BTC needs to move through the $19,381 pivot to target the First Major Resistance Level (R1) at $19,302 and the Wednesday high of $19,361. BTC would need the support of the NASDAQ 100 Mini to break out from the morning high of $19,220.

In the case of an extended rally, the Second Major Resistance Level (R2) at $19,471 and $19,500 would likely come into play. The Third Major Resistance Level (R3) sits at $19.751.

Failure to move through the pivot would leave the First Major Support Level (S1) at $19,022 and the Second Major Support Level (S2) at $18,911 in play. Barring an extended sell-off, BTC should avoid sub-$18,500. The Third Major Support Level (S3) at $18,631 should limit the downside.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. This morning, bitcoin sat below the 50-day EMA, currently at $19,305.

The 50-day EMA slid back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA to deliver bearish signals.

BTC needs to move through R1 ($19,302) and the 50-day EMA ($19,305) to give the bulls a run at the 100-day EMA ($19,370) and R2 ($19,471). However, failure to move through the 50-day EMA ($19,305) would leave S1 ($19,022) and sub-$19,000 in play.

Ethereum (ETH) Price Action

At the time of writing, ETH was up by 0.51% to $1,291. A mixed start to the day saw ETH slide to an early low of $1,270 before striking a high of $1,296. ETH tested the First Major Support Level (S1) at $1,272 early on.

Technical Indicators

ETH needs to move through the $1,293 pivot to target the First Major Resistance Level (R1) at $1,306 and the Wednesday high of $1,314. However, risk appetite will need to improve to support a return to $1,300.

In the event of an extended rally, the Second Major Resistance Level (R2) at $1,327 and $1,350 would likely come into play. The Third Major Resistance Level (R3) sits at $1,361.

Failure to move through the pivot would leave the First Major Support Level (S1) at $1,272 in play. However, barring another crypto sell-off, ETH should avoid sub-$1,250. The Second Major Support Level (S2) at $1,259 should limit the downside.

The Third Major Support Level (S3) sits at $1,2225.

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal. Ethereum sat below 50-day EMA, currently at $1,304. The 50-day EMA fell back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA, delivering bearish signals.

A move through the 50-day EMA ($1,304) and R1 ($1,306) would give the bulls a run at the 100-day EMA ($1,315) and R2 ($1,327). However, failure to move through the 50-day EMA ($1,304) would leave S1 ($1,272) in play.