The
recent hawkish repricing in the markets for more Fed hikes weighed on Bitcoin
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
Bitcoin Daily
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
Bitcoin 4 hour
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
Bitcoin 1 hour
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.