On the daily chart below for
BTCUSD, we can see that the price has pulled back to the previous resistance now turned support. The buyers are likely to defend
this level with the red long period moving
average offering extra support. The sellers will pile in if the price keeps
falling below this level and target the 25231 level. Today the risk event for
Bitcoin is the US
Jobless Claims report and tomorrow the US PMIs.
If the data points to a
recession, then we should see the cryptocurrency selling off as the risk
sentiment would turn sour. On the other hand, benign data should give the
buyers enough conviction to keep charging higher. The whole rally after the
Silicon Valley Bank collapse has been diverging with the MACD, so that’s another bad sign for
the bulls as we may see a deeper correction.
On the 4 hour chart below, we can
see that the price broke out of the range created just below the key weekly
resistance level and it’s now retesting it. The question is if it’s a retest or
the price keeps falling and it turns into a failed breakout. If it’s the
latter, it’s even more bearish for Bitcoin going forward. The moving averages
on this timeframe are crossed to the downside, so the trend is bearish for now.
On the 1 hour chart below, we can
see that if we were to get a pullback, the sellers are likely to lean on the
38.2% Fibonacci
retracement level where we have also the confluence with a previous swing level. The
market will watch carefully the data to decide where to go next.