FUNDAMENTAL OVERVIEW
Bitcoin couldn’t extend the gains on Friday despite a soft NFP reportand
the cryptocurrency eventually ended the day negative.
There wasn’t any bearish catalyst for the downside move, it’s just that
the NFP report didn’t matter much in the bigger picture since the totality of
the US data continues to be strong and the US-Iran negotiations remain at a
stalemate.
Over the weekend, Bitcoin recovered Friday’s losses and it’s now trading
at pre-NFP levels. Given a very light calendar this week, the focus will likely
remain on US-Iran developments.
If we get a breakthrough, we can expect oil prices to drop significantly
and give Bitcoin a boost on lower rate hike expectations and positive risk
sentiment. Another escalation, on the other hand, will likely send crude oil
higher and weigh on the crypto market.
BITCOIN TECHNICAL
ANALYSIS – DAILY TIMEFRAME
On the daily chart, we can
see that Bitcoinis trading near the monthly highs.
If the price pulls back into the trendline, we can expect the buyers to lean on
it, with a defined risk below it, to position for a rally into the 98,000
level. The sellers, on the other hand, will want to see the price breaking
below the trendline and the 82,500 support to pile in for a correction into the
76,000 level next.
BITCOIN TECHNICAL
ANALYSIS – 4 HOUR TIMEFRAME
On the 4 hour chart, we can
see the recent rangebound price action. The price broke above the minor 85,000
resistance on Friday but eventually move back below it before recovering the
losses. This noise suggests for more caution, so the buyers might want to wait
for the price to break above the monthly high or a pullback into the upward trendline
to start positioning for a move into the 98,000 level. The sellers, on the
other hand, will need a break below the trendline and the 82,500 support to
open the door for new lows.
BITCOIN TECHNICAL
ANALYSIS – 1 HOUR TIMEFRAME
On the 1 hour chart, we
have a minor upward trendline defining the current bulling momentum. The buyers
will likely continue to lean on it, with a defined risk below it, to keep
pushing into new highs. The sellers, on the other hand, will look for a break
lower to start positioning for a pullback into the major upward trendline. The
red lines define the average daily range for today.
UPCOMING CATALYSTS
Todaywe get
the US ISM Services PMI. On Wednesday, we have the FOMC meeting minutes. On
Thursday, we get the latest US Jobless Claims figures. On Friday, we conclude
the week with the University of Michigan Consumer Sentiment survey.
This article was written by Giuseppe Dellamotta at investinglive.com.