Bitcoin Technical Analysis

The recent hawkish repricing in the markets for more Fed hikes weighed on Bitcoin Bitcoin Bitcoin is the largest and world’s first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it functions without a central bank or single administrator. Rather, Bitcoin instead can be sent by peer-to-peer (P2P) networking, which is itself absent of any intermediaries.Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received across a kind of distributed ledger n Bitcoin is the largest and world’s first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it functions without a central bank or single administrator. Rather, Bitcoin instead can be sent by peer-to-peer (P2P) networking, which is itself absent of any intermediaries.Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received across a kind of distributed ledger n Read this Term as it has become a risk asset since wider adoption made it to correlate with more traditional markets and fundamentals. Recently, those hawkish expectations started to ebb given more disappointing economic data, but this week it’s the SEC that weighed on Bitcoin.

In fact, the U.S. Securities and Exchange Commission (SEC) sued on Monday Binance, the largest cryptocurrency exchange in the world, and Chairman Zhao for mishandling customer funds, lying to regulators, and misleading investors about its operational safeguards. The next day, the SEC sued Coinbase for operating as an unregistered broker. Nonetheless, Bitcoin rallied hard probably on expectations that more regulation would strengthen the cryptocurrency market or it was just a technical bounce.

Bitcoin Technical Analysis – Daily Timeframe

On the daily chart, Bitcoin bounced right at the 25231 support where we had also the confluence with the 50% Fibonacci retracement level. We may see another test of the downward trendline now where the sellers are likely to sell the rally and target a breakout of the 25231 support and the 21500 level next. The buyers, on the other hand, will want to see the trendline to give way to target the 31044 high.

Bitcoin Technical Analysis – 4 hour Timeframe

On the 4 hour chart, we can see how we got a little double bottom on the 25231 support and a big rally soon after into the 27400 swing resistance. We may expect Bitcoin to reach the trendline and the 28300 resistance area all else being equal. If we look left though, we can notice that we are in a rangebound market at the moment so for a clear direction it may be better to wait for a breakout of the 25231 support or 28400 resistance.

Bitcoin Technical Analysis – 1 hour Timeframe

On the 1 hour chart, we have a support zone at the 26600 level where we can find the 38.2% Fibonacci retracement level of the yesterday’s rally, a previous swing point and the red 21 moving average. The buyers may lean on this level to target the trendline on the upside, while the sellers may want to see the price breaking lower to pile in and target the 25231 support first and a breakout next.