Technical Analysis

BTC/USD Price Analysis – March 17, 2023

By LonghornFX Technical Analysis
Mar 17, 20233 min

Daily Price Outlook

The BTC/USD is currently trading at 25,718, up by 6.04% in a day. The global financial markets continue to tremble due to Credit Suisse reporting material weaknesses in its finances and the Saudi National Bank refusing to invest further capital to support the struggling Swiss institution.

To address the liquidity concerns over Credit Suisse, the Swiss National Bank intervened on Wednesday and allowed Credit Suisse to borrow up to $54 billion.

Investors have been impressed by the cryptocurrency market's stability amid the banking crisis this week. Additionally, bitcoin's correlation to stocks has been the lowest in months, altering perceptions of bitcoin as a valuable alternative asset.

After a significant surge in cryptocurrencies this week, the BTC/USD price increased as investors assessed the weaknesses in the financial systems of the US and Europe.

Fed Rate Hikes Uncertainty & BTC

Investors are worried that the Federal Reserve may reduce the 50 basis point interest rate increase to improve its resilience against persistent inflation in the United States.

On Wednesday, the US released data indicating a decline in producer inflation and weak retail sales figures, which raised expectations that the Federal Reserve may only slightly increase interest rates at its meeting.

Furthermore, concerns about a global financial collapse have added to the story of falling inflation, reducing the likelihood that the Fed would raise interest rates by 50 basis points. Reuters has also reported that during its meeting on March 22, the FOMC may only increase the federal funds rate by 25 basis points.

The Dollar Index has dropped to 104.06 and may continue to fall as uncertainty around the Fed's interest rate decision increases. Therefore, a weaker US dollar has benefited BTC/USD.

 Bitcoin Price Chart - Source: Tradingview

BTC/USD Intraday Technical Levels

Support     Resistance

24435          25446

23813          25835

23424          26457

Pivot Point: 24824

BTC/USD – Technical Outlook

Bitcoin's price is once again rising above the $25,000 resistance level, and it might increase much further if it manages to break through the $26,500 obstacle zone.

Originally, the Bitcoin price plummeted below the $25,000 support zone, and it even dropped below $24,500. The bulls, though, were aggressive near the $24,000 level, barring a further slide. On the upside, there is immediate resistance near $25,900, which is close to the 76.4% Fibonacci retracement level of the decline from the $26,525 swing high to the $23,913 low.

The next important obstacle is near $26,500, and if the Bitcoin price can close over this level, it might spark another rally. If the Bitcoin price fails to break over the $25,900 barrier level, it may begin another drop.

On the downside, the immediate support is near the $25,200 area, with the next major support near the $24,500 area and the 100 hourly simple moving average. If the price falls below this level, it may gather bearish momentum.



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