Bitcoin: Key Levels and Ideas to Monitor Following Wednesday’s FOMC Volatility

by Justin Bennett  · 

March 21, 2023

by Justin Bennett  · 

March 21, 2023

by Justin Bennett  · 

March 21, 2023

Bitcoin has been mostly sideways since Friday as traders hold their breath for Wednesday’s Fed rate decision and press conference.

Last week, I wrote about the $28,000-$29,000 BTC resistance area.

It coincides with the $1.18T range resistance on TOTAL, which I discussed on Friday.

Since the weekend, Bitcoin has carved a 1-hour ascending channel with support near $27,600 and a confluence of resistance at $28,900.

The $29,000 area dates back to early 2021 as resistance and later supported BTC until June 2022.

BTC 1h ascending channel
BTCUSDT 1-hour time frame

Although the pattern above could trigger a move this week, the bigger opportunity will materialize with the daily time frame below.

BTC recently broke above an ascending channel from last September, so $26,400 is now a must-hold level for bulls.

A daily close back below $26,400 would confirm the bearish fakeout and expose levels like $25,200 and $24,000.

But remember that Wednesday’s FOMC is less than 24 hours away.

That means we should expect intense volatility from BTC, which includes the potential for a run at $29,000 resistance.

We may even get a pump above that area for a potential bearish deviation later in the week.

As mentioned in Monday’s Weekly Crypto Forecast, I think it’s too late to think about buying BTC but shorting without a confirmed fakeout is just as risky.

With that in mind, my plan is simple.

Bitcoin either pumps above $29,000 after Wednesday’s FOMC, at which time I’ll start watching for a confirmed fakeout to get short.

Or we get the immediate weakness into $26,400 and daily close below that mark for the short entry.

Of course, we could also see this rally base above $29,000 later this week.

If that occurs, then I’ll stand aside and reevaluate.

Join us in Discord to see exactly how I’m trading BTC this week, and watch the DXY, BTC, and ETH video I just released to members!

BTC daily ascending channel
BTCUSDT 4-hour time frame

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