Bitcoin: What’s Next for BTC After Wednesday’s Rejection From Macro Resistance?

by Justin Bennett  · 

March 22, 2023

by Justin Bennett  · 

March 22, 2023

by Justin Bennett  · 

March 22, 2023

Bitcoin tested the $28,900 macro resistance during Wednesday’s FOMC volatility, a level I pointed out in Tuesday’s blog post.

In fact, it’s the same resistance area I’ve had my eye on for weeks.

BTC is also breaking below the 1-hour ascending channel mentioned in yesterday’s post.

I managed to get a short entry at $28,079, as mentioned in Discord.

But as bearish as today’s candle looks, the real test for BTC is the $26,500 support, also a level that was part of Tuesday’s discussion.

A higher time frame close below $26,500 this week would solidify the breakdown and open up downside targets like $25,200 and $24,000.

That said, given the massive amount of long liquidations below $20,000, I wouldn’t be surprised to see that area visited within the next few weeks.

Just keep in mind that BTC still has to take out additional key supports like $26,500 for targets like $20,000 to materialize.

Bitcoin liquidations
Bitcoin liquidation heatmap 3-month lookback

Liquidation clusters like this often serve as magnets for BTC.

And right now, there are far more long liquidations below current levels than short liquidations above $29,000.

Of course, today’s selloff could be a bear trap.

If it is, bulls will have to defend $26,500 and reclaim levels like $28,200 to confirm the fakeout.

Until then, I’ll stay short BTC with the intention of adding to the position on a close below $26,500.

Join us in Discord to see exactly how I’m trading BTC this week, and watch the video I just released to members on the DXY, SPX, TOTAL, USDT.D, BTC, and ETH.

BTC key levels
BTCUSDT daily time frame

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