The situation around Bitcoin continues to be grim. In just a week, Bitcoin fell by $10,000. And even though the situation on the market has calmed down a bit, investors are in suspense. Bitcoin is trading critically close near the 20,000 mark. This mark can either become a new springboard for the price of Bitcoin or bury the dreams and capital of many investors. As a result, investors’ opinions divided. Some investors advise buying Bitcoins in the fall. Another part of investors offer selling coins to cover their losses. And these two views are reflected in trade. On June 13, Bitcoin’s daily trading volume hit a 4.5-year high. It points to the divisive nature of the trade that is currently in the spotlight.
On June 15, the FOMC decided to raise the discount rate by 75 basis points. Bitcoin reacted to this news with a slight increase. The BTC/USD pair managed to move away from the critical level of 20,000 and tried to approach 23,000. But sellers entered the market, wishing to cover their losses. The increase in sales put pressure on Bitcoin and returned its price to around 21,000.
On the 1-hour chart, we can see that since June 15, the BTC/USD pair has started to form a new triangle. It supports the BTC/USD pair at around 20,300 and limits it at 21,250. In the current situation, going beyond this triangle will not have effect on the pair. If BTC/USD rises above 21,250, it will immediately face resistance in the 21,550 area. Pressure on the BTC/USD pair will increase as it approaches 23,000. The BTC/USD pair is unlikely easily overcome the resistance around 23,000. Movement above this level will slow down as BTC/USD approaches the resistance around 23,700.
On the other hand, the BTC/USD pair needs to hold above the 20,300 support. A break below this level will increase pressure on the support by around 20,000. A break of this level will trigger sales in the market and send Bitcoin to the 18,000 area.