Fundamental Overview
The markets went into risk-off on Tuesday after the strong US Consumer Confidence data which triggered an aggressive rise in long term Treasury yields. The report however just showed that the labour market remains resilient which is good news for growth and not necessarily bad news for inflation.
The month-end flows could also be skewing the picture. The negative sentiment weighed on Bitcoin although much less than in other markets, which might also be a signal that as soon as the sentiment changes, we could see some more upside.
Bitcoin Technical Analysis – Daily Timeframe
On the daily chart, we can see that Bitcoin is testing the 67275 support. This is where we can expect the buyers to step in with a defined risk below the level to position for a rally into the cycle highs. The sellers, on the other hand, will want to see the price breaking lower to open the door for a drop into the 60000 support next.
Bitcoin Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that we have some nice confluence around the support with the trendline and the 38.2% Fibonacci retracement level. This should technically strengthen the support zone and give the buyers a bit more conviction for a bounce. A break below the trendline, on the other hand, will likely give the sellers more control and possibly trigger a bigger correction.
Bitcoin Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that the first resistance comes around the 68861 swing level. A break above that level should open the door for a rally into the 70639 swing high.
Upcoming Catalysts
Today we will see the latest US Jobless Claims figures, while tomorrow we conclude the week with the US PCE report.
