BTC/USD Technical Analysis | Forexlive
On the daily chart below, we can
see that the buyers failed to break the 25K level with conviction and gave way
to the sellers. The top came exactly at the previous August 2022 high and the divergence with the MACD signals that the price is likely
to fall back to 21500 level which is the first target for the sellers.
There was some uncertainty in the
market given the talk of seasonal factors skewing the economic data based on
the month of January, but since the S&P Global US PMIs are based on the
recent month of February and they came out strong, the market got that extra confirmation
that things are really turning for the worse.
In fact, Bitcoin started its fall
the day of the PMIs release.
On the 4 hour chart below, we can
see that the price has pulled back a bit into the 50% Fibonacci
retracement level and it’s now eyeing a breakout to the
downside of the counter-trendline. The breakout will be the signal
for the sellers to start piling in with the target at 21500.
Yesterday, the market got some
bad news again from the ISM
Manufacturing PMI which showed a notable bounce back into expansion
of the “priced paid” sub-index, used as a proxy for inflation. The market is
increasingly worrying of another wave of inflation and a more hawkish Fed.
These are bearish developments for the crypto market.
On the 1 hour chart below, we
have a more closer look at the near-term price action. For the sellers the
breakout of the counter-trendline is the one to watch, while for the buyers,
the breakout above the 24000 level would give some hope for another test of the
25000 top.
Tomorrow, we have the ISM Non-Manufacturing PMI which is another key economic
report. Strong readings will push the prices even lower, while weak data may
give the buyers some relief.