Bitcoin traded as low as 18,240 before finding support. The cryptocurrency has slipped back into its weak channel between the blue and red bands. The daily stochastic has turned down (green rectangle) and is heading towards 20. If it makes it and holds this level (blue arrow), momentum will be biased to the downside.
On the hourly chart, support was the S3 pivot for a volatile session. BTCUSD is now moving back up, but there is significant overhead resistance above it at the central pivot, P. This coincides with price support turned resistance (red shaded horizontal).
Wednesday's monetary policy decision is weighing heavily on Bitcoin, with the Fed expected to deliver a 75bps hike. There is also nervousness around cryptos in general due to the White House's plans to regulate the industry.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.