Bitcoin is back at the key trendline. Another bounce or break? | Forexlive
Bitcoin has been on a great ride since Trump’s
tariff pause announcement back on April 9. We’ve seen the same with the
US stock market given that the main macro drivers for both are growth
expectations and liquidity.
Growth
expectations remain positive and the soft data is now showing improvement across the board with the US consumer confidence yesterday confirming the trend. The US Flash PMIs last week were also very good although the inflation part could pose a problem.
The only risk I see ahead for risk assets is a more hawkish repricing in interest rate expectations if inflation worries increase. This
repricing might trigger a bigger pullback in Bitcoin and the stock
market in the short-term, although the uptrend would remain unchanged.
Therefore, the economic data is now back in focus, especially on the inflation side.
Bitcoin 4 hour
On the 4 hour chart, we can see that the price is now trading near the key trendline that’s been defining the bullish momentum since April. We can expect the buyers to lean on the trendline with a defined risk below it to position for a rally into new highs. The sellers, on the other hand, will want to see the price breaking lower to target a pullback into the 102,127 level next.
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