Analyst: Bitcoin is headed for resistance amid FOMC bounce

Bitcoin (BTC/USD) is up 3.2% in the past 24 hours to currently trade around $21,671 and ease off lows seen on Tuesday when a number of negative news reports impacted sentiment.

After hitting intraday lows of $20,780 on Tuesday amid reports of SEC investigations against crypto exchange Coinbase, and a Treasury Department probe on Kraken, BTC/USD has had a decent punt to come close to $21,800.

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Bitcoin’s upside mirrors gains on Wall Street ahead of a US Federal Reserve rate hike expected to be another 75 basis points. The S&P 500 is up 1.4% and the Nasdaq has jumped more than 2.5% led by a spike across tech stocks.

Pro says $22,000 could be next key resistance zone

Bitcoin could flip higher given momentum across other risk asset markets, possibly opening up a path to recently hit price levels above $23k, or even $24k.

However, it’s also more likely that the cryptocurrency could struggle to break a critical resistance area that analyst Rekt Capital just highlighted on the 4-hour chart.

The analyst says:

BTC has rebounded to the upside after recently losing the channel (black) & losing the red trendline as well BTC may therefore be rebounding to flip the confluent area that is the red trendline & the black channel into new resistance (yellow circle).”

Pseudonymous crypto analyst CryptoGodJohn says the bounces ahead of FOMC are “headed into resistance.”