Fundamental Overview
Despite good data on the inflation and growth front, Bitcoin couldn’t find a sustained bid amid the generally positive risk sentiment. We got a quick drop into a key support zone today on the news that Mt. Gox will start distributing assets stolen from clients in a 2014 hack in July after years of postponed deadlines. Crypto traders have been aware of this event coming, although the timing was unknown.
Now, the market could see some furhter selling pressure into the first week of July, but this could also mark the bottom of the correction since the 72K level and see the buyers dipping their toes around these levels for a rally into new highs.
Bitcoin Technical Analysis – Daily Timeframe
On the daily chart, we can see that Bitcoin dropped all the way back to the key 60000 support zone after breaking below the 67275 level. The sellers for now remain in control but we can expect the buyers to start piling in around these levels with a better risk to reward setup.
Bitcoin Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see more clearly the key levels for the buyers which will be:
- the support zone around the 60000 level and
- the major trendline around the 58000 region.
The sellers, on the other hand, will want to see the price breaking below those levels to increase the bearish bets into new lows.
Bitcoin Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that from a risk management perspective, the sellers will have a better risk to reward setup at the downward trendline around the 64000 level. The buyers will want to see the price breaking above the most recent lower high at 63000 to find some footing and eventually get the price above the trendline to gain more conviction and increase the bullish bets into a new all-time high.
Upcoming Catalysts
This week is a bit light on the data front although we will still get to see some important releases. We begin tomorrow with the US Consumer Confidence where the market will be focused on the labour market details. On Thursday, we get the latest US Jobless Claims figures, while on Friday we conclude the week with the US PCE.
