Fundamental Overview

Bitcoin has rallied steadily since the benign US CPI report last week as the hawkish expectations subsided and the market switched its focus from inflation back to growth. This triggered a positive risk sentiment which is generally positive for the cryptocurrency. Late on Monday, we got the news that the SEC might greenlight spot ether ETFs ahead of its first deadline later this week. The consensus was that the funds would likely not be approved.

Bitcoin Technical Analysis – Daily Timeframe

Bitcoin Technical Analysis
Bitcoin Daily

On the daily chart, we can see that Bitcoin has rallied strongly after breaking above the key 67275 level. The next target should now be the cycle high at 73835 although we might see first a pullback before another rally. For now, we are still trading inside the big range between the 60000 support and the 73000 resistance.

Bitcoin Technical Analysis – 1 hour Timeframe

Bitcoin Technical Analysis
Bitcoin 1 hour

On the 1 hour chart, we can see that we have a nice support zone around the 68275 level where we can find the confluence of the trendline and the 61.8% Fibonacci retracement level. If we get a pullback to the trendline, we can expect the buyers to buy the dip with a defined risk below the trendline and target a rally into the cycle high.

The sellers, on the other hand, will want to see the price breaking below the trendline and the 67275 level to invalidate the bullish setup and position for a drop back into the 60000 support. The red lines indicate the average daily range for today.

Upcoming Catalysts

Today we have the FOMC Minutes late in the day although it’s unlikely to be market moving. Tomorrow, we will get the US PMIs and the latest US Jobless Claims figures.