Baxia Markets
June 13, 2024

Bitcoin Faces Critical Support and Resistance Zones After Fed Decision

market analysis header image


Market Overview: Bitcoin (BTCUSD) has returned to yesterday's low following a notable 4% rally. This pullback is primarily attributed to the Federal Reserve's decision to maintain interest rates steady. The Fed has indicated the possibility of a rate cut later this year and further reductions in 2025. According to the latest economic projections, officials anticipate only one rate cut this year, a revision from the three cuts forecasted in March. Additionally, inflation is expected to be more persistent than previously thought.Bitcoin Faces Critical Support and Resistance Zones After Fed Decision


Technical Analysis:

1-Hour Time Frame: On the 1-hour chart, key technical indicators like the Exponential Moving Average (EMA) and Ichimoku cloud have yet to confirm a bullish reversal for Bitcoin. Both indicators suggest a bearish outlook for the medium to long term. For a bullish confirmation from the Ichimoku cloud, we would need to see the Kijun Sen, Chikou Span, and Tenkan Sen lines crossing above the cloud. Similarly, for the EMA, a golden cross between the 50-period and 200-period EMAs would signal a bullish reversal. However, none of these confirmations have appeared as of now.


Key Levels: Support and resistance zones are defined by yesterday's high and low, indicating that the market is currently trading within yesterday's range, suggesting a ranging market. On a higher time frame, this scenario would likely produce an inside bar candlestick pattern, as highlighted by green and blue rectangles on the chart.


Economic Drivers: Today's key economic releases include initial jobless claims and the Producer Price Index (PPI) from the US. Economists are forecasting lower jobless claims and a lower PPI, although there is mixed sentiment on these predictions. If the actual data is worse than forecasted, it could be bullish for Bitcoin, potentially supporting the expectation of a rate cut by the end of the year.


Market Implications: If BTCUSD fails to break above the key resistance level, it could signal a bearish reversal, leading to further declines. Conversely, if the market can penetrate above this resistance, there is potential for Bitcoin to move higher, possibly reaching new all-time highs.

Conclusion: Bitcoin's near-term direction hinges on critical support and resistance levels and today's economic data releases. While the technical indicators have not confirmed a bullish reversal, market participants should closely monitor upcoming data and key levels for potential shifts in sentiment.


Key Economic Releases to Watch Today

USD, Initial Jobless Claims

Forecast 225K vs Previous 229K


Forecast 0.1% vs Previous 0.5%



News Article CTA - Trading with Baxia Markets 2024

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. 

Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.

Subscribe by Email