Fundamental Overview

The mood in the markets has been slowly improving this week after the month-end flows last week impacted the risk sentiment. The US data this week came on the softer side which sent Treasury yields lower and consolidated the market’s expectations of two rate cuts by the end of the year.

The risk-on sentiment is still present in the markets as the data overall has been showing good growth without worrying inflationary pressures. If this were to continue, Bitcoin could reach a new all-time high in the next few weeks.

Bitcoin Technical Analysis – Daily Timeframe

Bitcoin Technical Analysis
Bitcoin Daily

On the daily chart, we can see that Bitcoin bounced on the 67275 support and extended the rally into the next resistance around the 72000 level. The buyers continue to buy the dips looking for a new all-time high as long as the risk sentiment supports the market. The sellers, on the other hand, might lean on the 72000 resistance with a defined risk above it to position for a drop back into the 67275 level.

Bitcoin Technical Analysis – 4 hour Timeframe

Bitcoin Technical Analysis
Bitcoin 4 hour

On the 4 hour chart, we can see that we had some nice confluence around the support with the trendline and the 38.2% Fibonacci retracement level. This technically strengthens the support zone, so the sellers will need to break below that level to target the 60000 support next. If we get a pullback from the 72000 resistance, we can expect the buyers to lean on the trendline again to position for a breakout to the upside.

Bitcoin Technical Analysis – 1 hour Timeframe

Bitcoin Technical Analysis
Bitcoin 1 hour

On the 1 hour chart, we can see that we have some choppy price action at the moment around the 70640 level. This recent breakout should see the buyers increasing the bullish bets into the all-time high. The sellers will want to see the price falling below the 70000 level to position for a drop into the major trendline. The red lines define the average daily range for today.

Upcoming Catalysts

Today we get the US ADP and the US ISM Services PMI. Tomorrow, we will see the latest US Jobless Claims figures, while on Friday we conclude the week with the US NFP report.