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Bitcoin (BTC) Technical Analysis – Under Pressure And Seeking Some Relief

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Bitcoin (BTC)

There’s no doubt that the past 36 hours have provided for a tumultuous period across the board within the cryptocurrency sphere as the entire space has been littered a shade of crimson with numerous names violating short-term support levels and wreaking havoc in the process from a technical standpoint.

While we suspected that something was not right these past several days based on the action as well as the numerous names that we have recently profiled in these Technical reports displaying both vulnerable as well as slippery technical characteristics, the market has rendered its verdict via a harsh downdraft throughout the entire landscape leaving none unscathed.

With that said, a tremendous amount of technical damage has been inflicted and it will take time to repair the damage done. Let’s take a look at the Chart of Bitcoin (BTC) to see what may be in store moving forward.

As we can observe above, Bitcoin (BTC) has officially failed with its second attempt out of an inverted H&S formation and in the process, has now breached both our previously noted 8200 as well as the 7800 potential short-term support levels.

In addition, we can also see that BTC now resides beneath all of its important moving averages (20/50/200), which from a technical perspective, remains in an unfavorable posture.

Moving forward, both investors/traders may want to pay particular attention to the following levels for further clues/evidence with respect to direction.

If, at any time in the days ahead, BTC is capable of recapturing both the 7800 as well as the 8200 levels, which were acting as potential support and will now serve as short-term resistance, such development/s, should they materialize, would be a start in repairing the technical damage inflicted.

On the flip-side of the coin, both the 7240 as well as the 6880 levels may offer/provide short-term support. Should both levels ‘give way’ at any point in the days/weeks ahead, the probability suggests that a re-test of the February low located at the 6K level is likely.

Needless to say, the entire cryptocurrency universe remains under pressure and while we fully suspect that both investors/traders will be treated to some relief in the days ahead, a tremendous amount of technical damage has been levied and will take time in order to repair.

For those trading this tape, be sure to keep things on a tight leash and to honor Your Stops. Risk management is both priority number one and paramount, as always!

Happy Trading!!

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of Pexels

Charts courtesy of tradingview.com

Bitcoin

Bitcoin Price Could Get Extremely Ugly – Barrons

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Bitcoin (BTC/USD) price recent rebound has faded and its easy to see why. After soaring to a two-month high of $21,470, Bitcoin has pared back some of those gains to trade at $20,895. This decline is mostly because of the fundamentals and technicals of the coin as I will explain below.

Bitcoin Fundamentals

The main fundamental reason why Bitcoin is pulling back is the rising fears of a recession. A recent survey by WSJ placed the risk of a recession in the US at 61%. That is notable since it is the highest the figure has been in months. 

At the same time, Wall Street banks like Goldman Sachs, Citigroup, and Wells Fargo published weak financial results. Most of them said that their profits tumbled by more than 30% in the final quarter of 2022. Reading between the lines shows that most of them have allocated millions of dollars in credit loss provisons.

Historically, these provisions tend to rise when there is a fear of a recession. At the same time, many safe American companies have starte announcing substantial layoffs recently. Amazon is laying off 18,000 people while Microsoft, Salesforce, Meta Platforms are laying off thousands of workers. In a note, an analyst at Oanda said:

“Bitcoin prices are weakening as growth fears have Wall Street worried a…

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Bitcoin

2 Reasons Why Bitcoin Price is Soaring in 2023

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Bitcoin price has staged a strong comeback in 2023 as investors rushed to buy the dip. The BTC/USD exchange rate surged to a high of 21,465, the highest level since November. It has risen by more than 30% from the lowest point in 2022. Here are the top reasons why BTC price is soaring.

Mild recession hopes

Bitcoin and other financial assets like stocks and gold have rallied because of the falling inflation in the United States and around the world. Consumer inflation dropped from 7.1% in November to 6.5% in December. Core inflation dropped to 5.7%. 

And on Wednesday, data from the US showed that wholesale prices dropped by 0.5% in December, higher than the expected 0.1%. The producer price index (PPI), rose by 6.2%, the lowest level since March 2021. This decline happened because of the falling energy prices.

Another data showed that retail sales tumbled in December. They dropped by 1.1% in December, the biggest decline in 2022. In a note, an analyst at RSM said:

“The lag impact of elevated inflation weighs heavily on U.S. households, it’s very clear that the median American consumer is still reeling from the loss of wages in inflation-adjusted terms.”

A recession is often seen as a bad thing. But in the financial assets, it can be seen as…

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Bitcoin

Bitcoin Price is Getting Severely Overbought: Is it a Buy?

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Bitcoin price made a spectacular comeback in the past few days as investors reflect on encouraging data from the United States. The BTC/USD exchange rate surged to a high of $21,365, the highest point since November. It has risen by more than 35% from the lowest level in November. So, is the tide turning?

Will the Fed pivot?

Bitcoin and other global assets continued surging as investors reacted to the latest American economic data. Data published last week revealed that the American consumer inflation inched downward in December. It dropped to 6.5% in December, the sixth straight month of decline.

A week earlier, data by the Bureau of Labor Statistics (BLS) showed that the country’s unemployment rate dropped to 3.5% in December. In the same period, wage growth increased by 4.7%, lower than the previous month’s 5.2%. A decline in wage inflation is a positive sign for Bitcoin and other financial assets because of the Federal Reserve.

The Federal Reserve has been in a strong tightening phase in the past few months as it continues its battle against inflation. Its goal is to soften the economy and prevent a hard landing. Such a situation will happen when wage growth eases. 

Therefore, Bitcoin has risen because of the rising chances that the Fed will start to pivot. Historically, Bitcoin and other…

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