Bitcoin Technical Analysis | Forexlive

The
recent regulatory attacks from the SEC have weighed heavily on Bitcoin, but the
less hawkish expectations for the Fed rate path kept the price resilient above
the 25231 support. The things to watch now are the economic data. If we keep
seeing strong data that leads to inflation remaining higher for longer, the Fed
will likely respond with more tightening removing that support that kept
Bitcoin afloat. On the other hand, if the data keeps disappointing, we may see
some short-term upside due to dovish market pricing but an eventual recession
should trigger a selloff in Bitcoin.

Bitcoin Technical Analysis
– Daily Timeframe

On the daily chart, we can see that the big divergence with the
MACD
eventually led to a big pullback in Bitcoin. The price is now at the key 25231 support level
where we can also find the 50% Fibonacci retracement level.
This is where Bitcoin should find strong buyers and bottom out before another
rally towards the 31044 high or beyond. If the price breaks below the support
level though, we will likely see the price falling all the way back to the
20000 level where the big rally in Bitcoin first began.

Bitcoin Technical Analysis
– 4 hour Timeframe

On the 4 hour chart, we can see that we have a
minor downward trendline that
acted as resistance and offered the sellers many entry points for more shorts.
If the buyers manage to break through the trendline, we will likely see the
price rallying into the next major trendline roughly at the 27200 level. If the
price continues its downward move though, and even breaks through the 25231
support, then we could see a big selloff.

Bitcoin Technical Analysis
– 1 hour Timeframe

On the 1 hour chart, we can see that
Bitcoin has been ranging for a few days now. The buyers will need to break
above the resistance zone at 26200 level to get the extra confirmation for a
rally towards the 27200 level. Otherwise, we are likely to keep ranging here
until something gives.