Bitcoin Technical Analysis – We are approaching a key resistance level
Fundamental OverviewThe more dovish than expected FOMC decision eventually marked the bottom in many risk assets including Bitcoin. In addition, the benign US CPI figures on Wednesday were the trigger for the risk-on sentiment that took US stocks to new all-time highs and boosted the cryptocurrency. As long as the positive sentiment holds, we should see new highs for Bitcoin in the next few weeks with a break above the 67275 level probably confirming the bullish case. Bitcoin Technical Analysis – Daily TimeframeOn the daily chart, we can see that the break below the key support zone around the 60K level eventually turned out to be a fakeout. The cryptocurrency is now near a key swing point around the 67275 level. A break above that level should open the door for a rally into the cycle highs if not even higher. Bitcoin Technical Analysis – 4 hour TimeframeOn the 4 hour chart, we can see that the more dovish than expected FOMC decision marked the bottom for the correction and the benign US CPI figures were the green light for a rally in risk assets. The price action around the 60K support might have also formed an inverted head and shoulders pattern with the 67275 level as the neckline. We can expect the sellers to lean on the neckline with a defined risk above it and target a drop back into the 60K support. The buyers, on the other hand, will want to see a breakout to the upside to increase the bullish bets into the cycle highs.Bitcoin Technical Analysis – 1 hour TimeframeOn the 1 hour chart, we can see that the bullish momentum is waning ahead of the key resistance as depicted by the divergence with the RSI. Moreover, the average daily range marked by the red lines shows that Bitcoin is unlikely to extend to new highs today and if it the price rallies into the resistance it’s more likely that we will see a rejection. A good level where to lean on for the buyers would be the swing low at 64568 as a break below that level might invalidate the bullish case and see the cryptocurrency falling back to the 60K support. Upcoming CatalystsWe don’t have any noteworthy catalysts for today, so the markets will likely follow the path of least resistance set by the US CPI report or just consolidate into the weekend. This article was written by Giuseppe Dellamotta at www.forexlive.com.
Fundamental Overview
The more dovish than expected FOMC decision eventually marked the bottom in many risk assets including Bitcoin. In addition, the benign US CPI figures on Wednesday were the trigger for the risk-on sentiment that took US stocks to new all-time highs and boosted the cryptocurrency. As long as the positive sentiment holds, we should see new highs for Bitcoin in the next few weeks with a break above the 67275 level probably confirming the bullish case.
Bitcoin Technical Analysis – Daily Timeframe
On the daily chart, we can see that the break below the key support zone around the 60K level eventually turned out to be a fakeout. The cryptocurrency is now near a key swing point around the 67275 level. A break above that level should open the door for a rally into the cycle highs if not even higher.
Bitcoin Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the more dovish than expected FOMC decision marked the bottom for the correction and the benign US CPI figures were the green light for a rally in risk assets. The price action around the 60K support might have also formed an inverted head and shoulders pattern with the 67275 level as the neckline.
We can expect the sellers to lean on the neckline with a defined risk above it and target a drop back into the 60K support. The buyers, on the other hand, will want to see a breakout to the upside to increase the bullish bets into the cycle highs.
Bitcoin Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that the bullish momentum is waning ahead of the key resistance as depicted by the divergence with the RSI. Moreover, the average daily range marked by the red lines shows that Bitcoin is unlikely to extend to new highs today and if it the price rallies into the resistance it’s more likely that we will see a rejection.
A good level where to lean on for the buyers would be the swing low at 64568 as a break below that level might invalidate the bullish case and see the cryptocurrency falling back to the 60K support.
Upcoming Catalysts
We don’t have any noteworthy catalysts for today, so the markets will likely follow the path of least resistance set by the US CPI report or just consolidate into the weekend. This article was written by Giuseppe Dellamotta at www.forexlive.com.
