Bitcoin Technical Analysis | Forexlive

After the
news of BlackRock filing a Bitcoin ETF on June
15th, we saw the cryptocurrency surging in value going briefly from the 25K
level to the 31K one. Bitcoin resilience has been remarkable given the recent
hawkish repricing in interest rates expectations and the regulatory crackdowns.
The struggle to break above the 31K level though suggests that we might be at a
point where if the risk sentiment turns negative, Bitcoin can selloff pretty
hard. So, it will be important to monitor the fundamentals.

Bitcoin Technical Analysis
– Daily Timeframe

On the daily chart, we can see that after the
strong rally following the trendline
breakout, Bitcoin started to consolidate just beneath the key 31K resistance level.
The moving average are
still crossed to the upside as the bias remains bullish, but at this point
everything can change if the risk sentiment turns negative.

Bitcoin Technical Analysis
– 4 hour Timeframe

On the 4 hour chart, we can see more closely the
range created between the 29500 support and the 31000 resistance. The best
strategy in such instances is to just sit and wait for a breakout supported by
a fundamental catalyst and then go with the flow. Aggressive traders can also
“play the range” by buying at support and selling at resistance.

Bitcoin Technical Analysis
– 1 hour Timeframe

On the 1 hour chart, we can see that we
have an important mid-level where the price has been reacting to on both the
upside and the downside. This may be viewed as the “sentiment line” with the
sellers being more in control when the price is below the level and the buyers
being in control when the price is above it.

Upcoming Events

Today we have the US
CPI report. This is a very important release that can shape the markets for the
next weeks. If we the data is above expectations, especially on the core
numbers, we should see some risk off sentiment in the markets and Bitcoin
breaking lower. Conversely, if the data is below expectations, we should see a
positive mood in the market and Bitcoin is likely to break higher. We conclude
the week with the US Jobless Claims on Thursday and the University of Michigan
Consumer Sentiment on Friday.

See also the video below: