Started by forex4you, Sep 20, 2023, 05:27 pm
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Bitcoin might be stuck in a major range between the25231 support and the 31044 resistance as the uncertainty around the futureoutlook is now at its highest levels. On one hand, we have some resilience inthe economies with the inflation rates slowly normalising, but on the otherhand, we have signs of weakening growth and the central banks committed to keepmonetary conditions tight for a long time. The technicals should help with therisk management until we start to get a clearer direction.
Bitcoin Technical Analysis- Daily Timeframe
On the daily chart, we can see that Bitcoin bouncedagain on the key 25231 support andrallied into the downward trendline where itfound a strong resistance. This is where we can expect the sellers to pile inwith a defined risk above the trendline to target a break below the keysupport. The buyers, on the other hand, will want to see the price breakingabove the trendline to target the highs again.
Bitcoin TechnicalAnalysis - 4 hour Timeframe
On the 4 hour chart, we can see that the price hasbeen diverging with theMACD while itapproached the trendline. This is generally a sign of weakening momentum oftenfollowed by pullbacks or reversals. In this case, we should see a pullback intothe black trendline where the buyers will pile in with a defined risk below thetrendline to target a break above the major downward trendline and new higherhighs. The sellers, on the other hand, will want to see the price breakingbelow the trendline to confirm the reversal and position for a selloff into thekey support.
Bitcoin Technical Analysis- 1 hour Timeframe
On the 1 hour chart, we can see moreclosely the support zone around the black trendline and the 26800 level.There's nothing to do at the moment other than waiting for a pullback or abreakout.
This week has a few important economic releases that canhave an impact on Bitcoin. Today, the Fed is expected to keep rates unchangedwith the market focusing more on the Dot Plot and Powell's press conference,where he's likely to reaffirm their data dependency. Tomorrow, we will get thelatest US Jobless Claims report and much worse than expected data should weighon Bitcoin due to recessionary fears while much better-than-expected figuresare likely to weigh on the cryptocurrency due to risks of more tightening fromthe Fed. Finally on Friday we conclude the week with the US PMIs data with thesame playbook as for the Jobless Claims, that is, weak data is likely to sendthe markets into risk off and lead to weakness in Bitcoin, while strong datashould weigh due to a more hawkish repricing in rates.
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