Bitcoin rebounded from a key support as the risk sentiment improved a
bit after the fall in oil prices. The catalyst was Trump’s waiver of several
Russia sanctions as an attempt to ease fuel shortages and contain prices
without making concessions to Iran.
Ukraine’s attacks on energy infrastructure, though, will likely keep the
risk premium high, so without a de-escalation in the Middle East, oil prices
are unlikely to come off the highs that much.
This means that the recent improve in risk sentiment might not hold for
long without further positive developments. Keep in mind that the market’s focus
might have shifted to growth concerns, so this week’s US Flash PMIs should be
the most important data to watch.
Higher than expected data could quell growth fears and support Bitcoin
in the short-term. A soft report, on the other hand, might increase the
concerns and put pressure on the cryptocurrency.
BITCOIN TECHNICAL
ANALYSIS – DAILY TIMEFRAME
On the daily chart, we can
see that Bitcoincouldn’t break below the
support zone around the 80,000 level as the price rebounded once again. The
buyers will likely 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.