The recent regulatory attacks from the SEC have weighed heavily on Bitcoin, but the less hawkish expectations for the Fed rate path kept the price resilient above the 25231 support. The things to watch now are the economic data . If we keep seeing strong data that leads to inflation remaining higher for longer, the Fed will likely respond with more tightening removing that support that kept Bitcoin afloat. On the other hand, if the data keeps disappointing, we may see some short-term upside due to dovish market pricing but an eventual recession should trigger a selloff in Bitcoin.
Bitcoin Technical Analysis – Daily Timeframe
On the daily chart, we can see that the big divergence with the MACD eventually led to a big pullback in Bitcoin. The price is now at the key 25231 support level where we can also find the 50% Fibonacci retracement level. This is where Bitcoin should find strong buyers and bottom out before another rally towards the 31044 high or beyond. If the price breaks below the support level though, we will likely see the price falling all the way back to the 20000 level where the big rally in Bitcoin first began.
Bitcoin Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that we have a minor downward trendline that acted as resistance and offered the sellers many entry points for more shorts. If the buyers manage to break through the trendline, we will likely see the price rallying into the next major trendline roughly at the 27200 level. If the price continues its downward move though, and even breaks through the 25231 support, then we could see a big selloff.
Bitcoin Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that Bitcoin has been ranging for a few days now. The buyers will need to break above the resistance zone at 26200 level to get the extra confirmation for a rally towards the 27200 level. Otherwise, we are likely to keep ranging here until something gives.