Recent regulatory attacks from the Securities and Exchange Commission have weighed heavily on bitcoin, but less hawkish expectations on the Fed rate path have kept the price resilient above 25,231 support. Things to watch now are economic data. If we continue to see strong data causing inflation to continue rising for a longer period, the Fed will likely respond with further tightening to remove this support that has kept Bitcoin afloat. On the other hand, if the data continues to disappoint, we may see some short-term bullishness due to pessimistic market pricing, but an eventual slump should lead to Bitcoin selling.
Bitcoin technical analysis – daily time frame
Bitcoin Daily
On the daily chart, we can see that the large divergence with the MACD eventually led to a significant pullback in Bitcoin. The price is now at the major support level 25231 where we can also find the 50% Fibonacci retracement level. This is where Bitcoin should find strong buyers and bottom out before another rally towards the high of 31044 or beyond. If the price breaks below the support level, we will most likely see the price drop all the way to the 20,000 level where the huge rally in Bitcoin first started.
Bitcoin technical analysis – 4 hour time frame
Bitcoin 4 hours
On the 4 hours chart, we can see that we have a minor downtrend line that has acted as resistance and offered the sellers several entry points for more short positions. If the buyers can break through the trend line, we will likely see the price rally towards the next major trend line at around 27,200. If the price continues its downward movement, and even breaches the support level 25231, we may witness a major sell-off.
Bitcoin Technical Analysis – 1 hour time frame
Bitcoin 1 hour
On the hourly chart, we can see that Bitcoin has been ranging for a few days now. Buyers will need to break the resistance area at the 26200 level to get additional confirmation of a rally towards the 27200 level. Otherwise, it is likely that we will continue to range here until something gives.