Bitcoin continues to surprise in light of many headwinds that range from economic issues in China and risks of higher rates if inflation remains stubbornly high given the resilience in the labour markets and consumer spending.
Bitcoin Technical Analysis – Daily Timeframe
On the daily chart, we can see that Bitcoin’s price action has been choppy for several weeks and it doesn’t look like it will change soon. The bias for now remains bearish as the fakeout above the resistance led to a bigger correction that should resolve around the upward trendline. In fact, this is where we should see the buyers stepping in more strongly with defined risk below the trendline and target another breakout of the 31K resistance.
Bitcoin Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see the recent rangebound price action with a couple of tries from the buyers to break above the 29500 resistance and rally. Unfortunately, we have also strong sellers leaning there waiting for the price to break below the trendline to pile in even more aggressively and extend the fall towards the 25000 level.
Bitcoin Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that the price action has formed a descending triangle pattern so a breakout on either side should lead to an increase in momentum and a more sustained move.
Upcoming Events
This week is a bit empty on the data front and the most important release will be the US Jobless Claims tomorrow. Readings in line with expectations should be the most favourable scenario. In fact, in case we see a big beat, we may see more hawkish expectations around interest rates that can weigh on Bitcoin. On the other hand, a big miss is likely to cause recessionary fears and lead to risk-off sentiment which might cause a selloff in the cryptocurrency.
