Bitcoin had a negative day yesterday as the broader crypto market came
under pressure after crude oil surged to new weekly highs.
In the Asian session, though, oil prices pulled back and we saw a quick
reversal in many risk assets, including bitcoin.
The geopolitical situation remains basically unchanged as the Houthis
continue to attack Saudi Arabia, while the US-Iran negotiations are in a
deadlock. Unless the Fed turns more dovish, the geopolitical risks will likely
continue to cap the upside.
Looking ahead, tomorrow we get the US CPI report, which is going to be a
key near-term catalyst. Higher than expected core inflation could trigger a
selloff in bitcoin on a hawkish repricing and increased rate hike probabilities
for October. A soft report, on the other hand, might give the cryptocurrency a
short-term boost.
BITCOIN TECHNICAL
ANALYSIS – DAILY TIMEFRAME
On the daily chart, we can
see that Bitcoin is rebounding from the
support zone around the 81,500 level. The buyers will likely continue to step
in around the support, with a defined risk below it, to keep targeting a rally
into the 98,000 level. The sellers, on the other hand, will want to see the
price breaking lower to pile in for a drop into the 75,000 level next.
BITCOIN TECHNICAL
ANALYSIS – 4 HOUR TIMEFRAME
On the 4 hour chart, we can
see more clearly the rangebound price action of the last few weeks. From a risk
management perspective, the buyers will continue to have a better risk to
reward setup around the 81,500 support to keep targeting new highs, while the
sellers will be better off shorting from the 87,400 resistance or wait for a
break below the support.
BITCOIN TECHNICAL
ANALYSIS – 1 HOUR TIMEFRAME
On the 1 hour chart, we
have a minor support around the 83,000 level. If we get a pullback, we can
expect the buyers to step in there, with a defined risk below the support, to
position for a rally into the 87,400 resistance. The sellers, on the other
hand, will look for a break to extend the pullback into the 81,500 support
targeting a break below it. The red lines define the average daily range for today.
UPCOMING CATALYSTS
Tomorrow we have the US CPI
report. On Thursday, we get the US PPI, the US Retail Sales and the latest US
Jobless Claims figures.
This article was written by Giuseppe Dellamotta at investinglive.com.
