Bitcoin tanked yesterday as the rout in the stock market triggered a
strong risk-off sentiment across the board.
It looks like the market realised that the blue sweep is not a good
thing amid more fiscal restraint and tighter regulation and restrictions on AI
infrastructure.
Moreover, a Democratic Congress doesn’t limit Trump’s power to impose
tariffs or continue the war with Iran. So, all in all, this should be a net
negative for the growth outlook and therefore for risk sentiment, unless the
US-Iran war finally ends.
Looking ahead, the focus will remain on US-Iran developments and the Fed.
A breakthrough ion negotiations would be positive for Bitcoin on improving
growth outlook and positive risk sentiment. An escalation, on the other hand,
will likely trigger another selloff on increasing growth concerns and safe
haven flows.
BITCOIN TECHNICAL
ANALYSIS – DAILY TIMEFRAME
On the daily chart, we can
see that Bitcoin tanked yesterday amid the
tech stocks rout leaving behind a fakeout. The selloff paused around the key
75,000 level as the buyers started to pile in, with a defined risk below the
level, to position for a rally into the 98,000 level. The sellers will want to
see the price breaking lower to increase the bearish bets into the major upward
trendline around the 72,000 level.
BITCOIN TECHNICAL
ANALYSIS – 4 HOUR TIMEFRAME
On the 4 hour chart, we can
see more clearly yesterday’s selloff and the bounce around the 75,000 level.
There’s not much we can glean from this timeframe as the buyers will continue
to pile in around the 75,000 level and increase the bullish bets on a break
above the downward trendline, while the sellers will wait for a break below the
75,000 level to extend the selloff into the major upward trendline.
BITCOIN TECHNICAL
ANALYSIS – 1 HOUR TIMEFRAME
On the 1 hour chart, there’s
not much we can add here but the swing high around the 77,000 level could act
as minor resistance. The buyers will want to see the price breaking higher to
increase the bullish bets into new highs, while the sellers could lean on it,
with a defined risk above it, to position for a break below the 75,000 level. The
red lines define the average daily range for today.
UPCOMING CATALYSTS
Today we
conclude the week with the US NFP report and the University of Michigan
Consumer sentiment survey.
This article was written by Giuseppe Dellamotta at investinglive.com.
