Pullback pauses above strong support zone, awaiting fresh signals from Fed comments

Bitcoin bounced above $63000 on Wednesday morning after the pullback from new record high found a footstep just above significant Fibo support at $60340 (38.2% of $38501/$73839 rally) anthological $60000 level.

Technical studies on daily chart point to existing risk of further weakness, as negative momentum is strengthening, south-heading RSI broke below neutrality zone and 10/20DMA’s are in bearish setup.

The notion is also supported by overbought weekly studies and formation of reversal pattern on weekly chart.

In such scenario, limited upticks should be capped by barriers at $65500/700 zone (broken Fibo 23.6% of $38501/$73839 and Fibo 38.2% of $73839/$60688 respectively) to keep near-term bears in play for renewed attempt at $60340/$60000 pivots, loss of which to open way for deeper correction and expose targets at $56170 (50% retracement of $38501/$73839) and $55293 (rising 55DMA).

Otherwise, sustained break above $65700 zone may generate an initial signal of an en of corrective phase, though with more work at the upside needed to confirm.

The FOMC ends its two-day policy meeting today and is widely expected to keep the policy unchanged, but economic projections and comments from Chief Powell are likely to provide fresh signals.

Res: 65500; 65712; 67264; 68441
Sup: 62264; 60340; 60000; 56170