Bitcoin remains mostly rangebound amid uncertainty around US-Iran
negotiations and growing concerns about the macroeconomic outlook. We got an
upward spike yesterday after Al-Arabiya reported that Qatar and Pakistan
presented a compromise proposal that could pave the way for an agreement, but the
momentum faded after a diplomat involved in the talks subsequently pushed back
against reports that a deal was close.
Markets retain some hope of a breakthrough given the recent increase in
positive headlines and the proximity to the US midterm elections. A deal would ease
inflation and rate hike concerns and improve the risk sentiment, providing some
short-term support for Bitcoin.
Another potential catalyst could be Friday’s US Flash PMIs. A stronger than
expected report could trigger a short-term relief rally on improved risk
sentiment. However, it wouldn’t change the bigger picture, as stronger economic
data and persistent inflationary pressures would reinforce the need for further
Fed rate hikes. A weak report, on the other hand, could intensify growth
concerns and lead to risk aversion, putting further pressure on the
cryptocurrency.
BITCOIN TECHNICAL
ANALYSIS – DAILY TIMEFRAME
On the daily chart, we can
see that Bitcoinextended the gains this week
after bouncing from the key 80,000
support. If we get another pullback into the support, we can expect the buyers to
continue to step in around the support, with a defined risk below it, to keep
targeting a rally into the 98,000 level. The sellers, on the other hand, will
want to see the price breaking lower to pile in for a drop into the 75,000
level next.
BITCOIN TECHNICAL
ANALYSIS – 4 HOUR TIMEFRAME
On the 4 hour chart, we have
a minor resistance around the 84,000 level. If the price gets there, we can
expect the sellers to step in around the resistance, with a defined risk above it,
to keep targeting a break below the support. The buyers, on the other hand,
will look for a break higher to increase the bullish bets into the 87,400 level
next.
BITCOIN TECHNICAL
ANALYSIS – 1 HOUR TIMEFRAME
On the 1 hour chart, there’s
not much we can add here as the sellers will have a better risk to reward setup
around the resistance, while the buyers will need a break to open the door for
new highs. The red lines define the average daily range for today.
UPCOMING CATALYSTS
On
Thursday we get the latest US Jobless Claims figures, while on Friday we
conclude the week with the Flash US PMIs.
This article was written by Giuseppe Dellamotta at investinglive.com.