BTCUSD Technical Analysis

On the daily chart below, we can see that Bitcoin seems to be bottoming near the 25231 support level as we got a little rally from the double top at 26000. The recent hawkish repricing in rates expectations weighed on BTCUSD which is mainly driven by liquidity Liquidity Liquidity refers to the extent of a financial instrument’s ability to be bought or sold without causing price fluctuations. Thus, if an asset is extremely liquid, it means one can trade that asset in the knowledge that one’s specific dealing won’t create significant movements in the market.This is because there exists such a large number of traders going both long and short, generating huge volume for that particular asset. Liquidity in the FX MarketTake the example of the foreign exchange marke Liquidity refers to the extent of a financial instrument’s ability to be bought or sold without causing price fluctuations. Thus, if an asset is extremely liquid, it means one can trade that asset in the knowledge that one’s specific dealing won’t create significant movements in the market.This is because there exists such a large number of traders going both long and short, generating huge volume for that particular asset. Liquidity in the FX MarketTake the example of the foreign exchange marke Read this Term and tighter conditions make it harder for it to rally. The strong resistance at 30000 may have also seen some profit taking.

We can see that the entire rally after the Silicon Valley Bank collapse was diverging with the MACD. This is generally a sign of weakening momentum and it’s often followed by pullbacks or reversals. The price did pull back to the 25231 support, although not perfectly, so we are now at a crossroads waiting for a catalyst to push it higher or lower.

BTCUSD Technical Analysis

On the 4 hour chart below, we can see that Bitcoin recently rallied towards the last swing high where the price got rejected. The sellers may be targeting the breakout of the 25231 support but at the moment it looks like we will be stuck in this range between the 26000 support and 28300 resistance until we get a breakout on either side.

On the 1 hour chart below, we can see that BTCUSD is bouncing from the last swing high at 27000 as the selloff got a bit overstretched from the blue 8 moving average. Generally, the price either consolidates or pulls back to the moving average for a new equilibrium. The buyers may lean on this support level with a defined risk just below it and target the 27525 resistance where we can also find the 50% Fibonacci retracement level.

If the buyers manage to break above that resistance, the next target will be a breakout of the 28300 level. The sellers, on the other hand, are likely to lean on that 27525 resistance for another selloff towards the 26000 support. Alternatively, they may jump onboard if the price just falls through the 27000 level.