Bitcoin is now trading below the $22K mark!
Will there be enough buyers in the next support zone to stem BTC/USD’s downtrend?
Earlier this week, risk assets like Bitcoin (BTC/USD) took hits after Fed Chairman Powell hinted of even higher interest rates and longer periods of higher interest rates.
It also didn’t help that Silvergate Capital, a major lender to the crypto industry, has announced that it will wind down its operations and undergo “voluntary liquidation” that includes “full repayment of all deposits.” This comes after the company saw a “recent turmoil” and the “digital asset industry underwent a transformational shift.”
Not surprisingly, BTC/USD ended up retesting and then eventually breaking below the closely-watched $22,000 psychological handle.
But how low can BTC/USD go?I’m taking note of the $21,500 zone that served as resistance in mid-January and then a major support in mid-February.
If there are enough buyers at the area of interest, then BTC/USD could jump back to the $22,500 consolidation and 200 SMA levels.
But BTC/USD’s next moves will still depend on this week’s headlines.
This week’s U.S. NFP report, for example, could surprise to the upside again and support Fed Chairman Powell’s hawkish narrative.
Concerns over China’s data releases can also continue to weigh on risk-taking and drag BTC/USD lower.
If BTC/USD breaks below the $21,500 support levels, then short-term traders can eye the $21,000 or even the $20,500 areas of interest for potential profit targets.
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