VOT Research Desk

Because of this week’s CPI print, interest rate hike, and Federal Reserve chair Jerome Powell’s conference, cryptocurrency and stock markets could see a sharp increase in volatility.

For the previous three days, Bitcoin has been stuck between $16,678 and $17,424. This suggests that the bears are defending the overhead resistance level of $17,622 while the bulls are buying tiny falls.

Tight ranges are usually followed by an increase in volatility, although the direction of the breakout is difficult to anticipate.

As a result, it is preferable to wait for the price to break above or below the resistance level before placing directional bets. If the price breaks and closes above the 50-day simple moving average ($17,911), the advantage may flip in favors of buyers.

This could pave the way for a rally to the downtrend line. On the other hand, if the price falls below $16,678, numerous buyers may be obliged to withdraw. This has the potential to push the BTC/USDT pair to $15,476.

VOT Research Desk

In the past three days, the price of bitcoin dropped 15%, surpassing the swing low of $17,593 set on June 18.

BTC is now in a precarious situation where a recovery is only feasible if it can rise over the $19,000 mark as a result of this event. In this scenario, a rebound bounce to $20,742 may be in progress.

If buyers pick up in the next days, BTC will continue to trade between $18,500 and $20,742 for a while.

A momentum-building development like this one is essential, especially if it signals the beginning of a run-up to $25,000 or $28,000.

However, if the price of Bitcoin drops below the $18,500 support, things might go south quickly. BTC’s daily candlestick closure below $17,593 will invalidate the bullish view and cause a decline in price.