Bitcoin is having trouble making new highs above the $65,000 mark!
Will this extend the BTC/USD price in its weeks-long downtrend?
We take a closer look at the 4-hour chart:
Bitcoin (BTC/USD) for 4 hours Chart by TradingView
If you've read our latest Daily market summary You will then learn that Bitcoin reached a high near $65,500 before settling back down to just over the $63,000 area. Although there are no direct catalysts for this move, we may see an impact from spot Bitcoin ETFs that have recorded notable net outflows since last week.
Meanwhile, concerns about global growth and the potential failure of ceasefire negotiations between Israel and Hamas sent some traders to safe havens such as the US dollar.
Remember that directional biases and volatility conditions in market prices are usually driven by fundamentals. If you haven't done your financial homework on Bitcoin and USD yet, it's time to check the economic calendar and stay up to date with daily fundamental news!
Extended Bitcoin weakness could drag BTC/USD below the 100 SMA and into the $62,000 pivot point level. If we see enough demand for the USD, the pair could extend its weeks-long downtrend and head towards previous lows near the S1 pivot point line ($58,776) or previous lows of $56,600. Yeppies!
However, we do not rule out an extension of last week's rally. If BTC/USD continues to find support from the 100 SMA area, the pair may attract enough buyers to revisit the previous $65,500 resistance area. It may also break the downward channel pattern and head towards the previous turning point of $70,000!
Whichever direction you choose to trade in the next few days, make sure you stick to your risk management plan and that you keep a close eye on any major headlines that may impact Bitcoin's price movement!