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Bitcoin Technical Analysis – The negative mood weighs on the cryptocurrency
Fundamental overview
Markets entered a risk-off phase on Tuesday after the strong American consumer confidence data that triggered an aggressive rise in long-term Treasury bond yields. The report, however, simply demonstrated that the labor market remains resilient, which is good news for growth and not necessarily bad news for inflation.
End-of-month flows could also distort the picture. Negative sentiment has weighed on Bitcoin, although much less than other markets, which could also be a sign that as sentiment changes, we could see some further upside.
Bitcoin Technical Analysis: Daily Time Frame
Bitcoin every day
On the daily chart, we can see that Bitcoin is testing 67275 support. This is where we can expect buyers to step in with defined risk below the level to position themselves for a rally towards cycle highs. Sellers, on the other hand, will want to see the price drop lower to open the door for a subsequent decline into the 60000 support.
Bitcoin Technical Analysis – 4 Hour Time Frame
Bitcoin 4 hours
On the 4-hour chart, we can see that we have some interesting ones confluence
around the support with the trend line
and 38.2% Fibonacci retracement level. This should technically strengthen the support zone and give buyers a little more conviction for a bounce. A break below the trend line, on the other hand, will likely give sellers more control and could trigger a larger correction.
Bitcoin Technical Analysis – 1 Hour Time Frame
Bitcoin 1 hour
On the 1-hour chart, we can see that the first resistance is located around the 68861 swing level. A break above that level should open the door for a rally towards the swing high of 70639.
Upcoming catalysts
Today we will see the latest US unemployment claims data, while tomorrow we will conclude the week with the US PCE report.