Bitcoin encountered a previous rough week as the market turned strongly bearish. After a two-month-long price rally, Bitcoin entered a bearish phase, and its price fell to the sub-$20,000 level for the first time in six weeks; it decreased 1.03% on Saturday. The global crypto market cap also fell below the $1 trillion mark. The further decrease followed Fed Chair Jerome Powell’s speech highlighting inflation and other economic factors. Fxempire reports that Bitcoin’s Fear&Greed Index remains at 28/100 despite its price below the $20,000 mark. Bitcoin slid 6% on Friday; it ended the day at $20.049.
What’s next for the world’s biggest cryptocurrency
Bitcoin rose to $20,386 on Saturday before a reversal. It fell through the First Major Resistance Level (R1) at $21,380 before falling to $19,773. However, the price remained above the First Major Support Level (S1) at $19,639. Bitcoin revisited the $21,100 mark towards the day’s end. Powell mentioned a possible fallout from the Fed’s policies to curb inflation. The speech affected the investors and led to a price decrease of various cryptocurrencies; it also shed light on a weaker labor market to manage inflation. Crypto investors have suffered a lot recently due to several negative economic factors.
Technical indicators and future market trends
Bitcoin might revisit the $25,000 mark if the Fear&Greed Index rises to 40/100. Fxempire reported BTC at $20,072 at the time of writing; it fell to $19,933 before rising to $20.082. Bitcoin needs to steer clear of the $20,069 pivot to test the First Major Resistance Level (R1) at $20,366. A fall below the pivot might lead to a further price decline, whereas an extended bullish scenario might push Bitcoin’s price towards the Second Major Resistance Level (R2) at $20,682. The Third Major Resistance Level (R3) sits at $21,295.