Price levels for BTC after FOMC decision

Key points: 

• Bitcoin is trending lower after hitting monthly highs around the latest U.S. macroeconomic data and political updates. 
• “Area to hold remains the same; $17.2-17.4K. If we do, the path towards $20.5K in 2-4 weeks is open.” - Michael van de Poppe, CEO, and founder of trading firm Eight.
• “Good to keep note of all the untapped highs & lows to see where price possibly wants to head next. The market is now looking to get both sides out” - popular trader and analytics account Daan Crypto Trades. 
• There are reportedly more bearish views on BTC price action, including Crypto’s Il Capo, who still thinks a mass capitulation is yet to come.
• Meanwhile, trader Crypto Tony said he expects $17,300 to resurface on the day.

Bitcoin is trending lower after hitting monthly highs around the latest U.S. macroeconomic data and political updates.

After peaking around $18,370 on Bitstamp on Dec. 14, BTC/USD is now paring its gains, alerting traders to where the next trend reversal could occur.

Opinions are divided – some are warning bulls that the support level has fallen, while others see recent events as just another point on the way to lower levels.

Michaël van de Poppe: Must hold $17,200 to hit $20,000

After calling the macro market reaction to the Fed “relatively dull” this week, Michael van de Poppe, CEO, and founder of trading firm Eight said support levels for BTC/USD are close.

At the time of writing, the currency was trading nearly $1,000 below local highs, with Van de Poppe seeing $17,200 as the limit for bulls.

After a rise, a higher low (HL) is likely to follow. On the upside, bulls holding support could still spark a Christmas rally, which includes a break above $20,000.

“All things considered, we’re going to do some consolidation on Bitcoin and look for HL,” he told his Twitter followers.

“Area to hold remains the same; $17.2-17.4K. If we do, path towards $20.5K in 2-4 weeks is open.”

BTC/USD was last trading above $20,000 before the FTX crash sent the entire cryptocurrency market down 25% or more.

Daan Crypto Trades: Market Hopes to 'Down Everyone'

Popular trader and analytics account Daan Crypto Trades says Bitcoin is bouncing up and down for liquidity.

After BTC/USD settled on $17,600 — Bitcoin’s low in June this year — as a key level for bulls, it took just hours to drop lower.

So, clearly, both bulls and bears could be punished in the short term.

"All jokes aside, the market is now looking to get both sides out," Daan wrote in a follow-up tweet.

“Good to keep note of all the untapped highs & lows to see where price possibly wants to head to next.”

At the time of writing, this untapped liquidity extended to just above $17,000, with $17,750 and above representing selling pressure.

Daan had previously identified $18,200 as a key level to turn to support a sustained rally.

BTC/USD annotated chart. [Daan Crypto Trades/ Twitter]

Crypto Tony: $17,300 'will take a hit'

Meanwhile, trader Crypto Tony said he expects $17,300 to resurface on the day.

“Short hedges are doing well, my previous long position had a Bitcoin stop of $17,300, and today will undoubtedly take a hit. The push is partially profitable, but not by much. Not the best trade, nor the worst deal," he told his followers.

Another tweet added that BTC/USD needs to see more buying interest for fresh upside potential.

There are reportedly more bearish views on BTC price action, including Crypto’s Il Capo, who still thinks a mass capitulation is yet to come.

In the long run, Crypto Tony also refuses to rule out a drop to $10,000.

At the time of writing, BTC/USD was trading around $17,500, just before Wall Street started trading, according to TradingView.

BTC/USD 1-h  chart. [Bitstamp/TradingView]