Dear readers, hello! Here Romain, for a technical review around the evolution of Bitcoin prices. After dry speeches and in a determined tone, the Federal Reserve continues to throw oil on the fire of the bear market. And Bitcoin is no exception to the rule.
Quick tour of the general macroeconomic situation
At the end of last week, Jérôme Powell threw a chill. He vowed to wage war on inflation and recalled that the current situation will have a strong impact on the economy.
Inflation and its impact on the world remains the topic of the moment for the markets. It remains to be seen whether operators have taken into account the real risk of recession or whether a chopper could still fall on global indices.
Currently, the big question focuses on the next key rate hike. The markets are trying to anticipate a further rise in 0.75% in the USA. To be continued…
Now is the time to take a look at the technical situation of the Bitcoin :
Bitcoin – Weekly chart: The Tenkan as the worst enemy
The technical presentation has something to titillate the patience of even the wisest investors.
Indeed, while prices had managed to break the Weekly Tenkanhere they are again under this same moving average… The reversal signal was finally nipped in the budin just two weeks.
Currently, prices are back on their medium-term support, the Fibonacci ratio, 38.2%. Located at $19,500, it represents an important technical rampart. In case of breakage, only the June 2022 low will remain as the ultimate support zonebefore a technical abyss of… 24%.
Indeed, if the $17,600 are broken, the next support is the former high of June 2019at $13,400. The gap is significant, but still possible if the market continues to experience this selling pressure.
To invalidate this scenario, it will be necessary to break, again, the Tweekly enkannow located at $22,000.
The indicator of volumes shows an increase in activity, with high volatility due to statements by Jérôme Powell.
Bitcoin – Daily chart: back to square one
After several failed attempts this summer, prices are back below the daily cloud.
The indicator Ichimoku was of key importance. Indeed, the prices failed to break out of the daily cloud and break the famous resistance of the $25,000. So the buy signal was still not given.
And since last week, prices have emerged from the bottom of this daily cloud. Moreover, the Daily Tenkan locks in prices and drags them south.
The indicator ROI remains stuck in its selling zone, below the median of 50. It does not give, for the moment, any reversal signal.
Also, the indicator On Balance Volume shows that the volumes are mainly intended for capital flight, which is constantly falling.
Finally, a first bullish reversal signal will be given by a break of the daily tenkan and a reinstatement of daily cloudso a return to the zone of $21,000.
Thank you for reading this analysis. And see you Saturday to dissect another cryptocurrency.
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