BTC/USD Technical Analysis | Forexlive
On the daily chart below, we can
see that the break below the key support level at 21500 failed as the
price shot up with a very strong momentum eventually breaching the high at
25231. We can say that the break above the high failed as well, as depicted by
the daily shooting star candlestick.
We can also see that the last big
spike up makes the divergence with the MACD even stronger, which is a bad
omen for the buyers. In fact, this latest move up came amid the turmoil in the
banking sector and there are talks of bitcoin being bought as a safe haven like
gold.
But this may have been just a
speculative move on the basis that the Fed will cut interest rates and flood
the market again with liquidity. We will see how this evolves but it looks like
the Fed will still hike interest rates and probably hold them there enough to
cause a recession.
On the 4 hour chart below, we can
see that on Monday as the Fed unveiled its new emergency lending facility to
calm the markets and avoid a banking crisis, the price of Bitcoin started to
rally. Once the price broke above the trendline, the momentum chasers jumped in
and pushed the price even higher.
Now the market is consolidating a
bit after such a huge run, and we can see that the buyers have the support of
the red long period moving
average and the 38.2% Fibonacci
retracement level of the entire move up. The sellers will want
to wait for a break lower before piling in and pushing the price to new lows.
On the 1 hour chart below, we can
see more clearly the support zone at the 24000 level. The buyers will lean on
that support with defined risk and increase the momentum if the price breaks
the 25231 resistance. The sellers, on the other hand,
will aim for a break below the support zone and jump in to target new lows and
possibly erase the entire move up if the divergence we saw on the daily chart
works out.