Bitcoin (BTCUSD), the pioneering cryptocurrency, finds itself in a pivotal moment as it contends with recent market dynamics. Despite its remarkable ascent, Bitcoin’s price has plateaued below its record high, displaying a notable lack of upward momentum for four consecutive weeks. However, amidst this stagnation, a slight rebound of 1.82% this week hints at a potential resurgence.
Recent U.S. economic data, particularly robust Nonfarm Payrolls and an uptick in March inflation to 3.5%, above expectations, have heightened market uncertainties. These developments challenged the position of risk assets, including Bitcoin, prompting a reassessment of rate cut probabilities, now pushed further out to September from initial expectations for June.
As Bitcoin navigates these shifting landscapes, the question looms: can it sustain resilience and forge new peaks, or has it already reached its zenith? Traders keenly watch for signals of Bitcoin’s future trajectory amidst evolving economic conditions and market sentiment.
Technical
Bitcoin’s recent price action reflects a notable shift in sentiment favouring the downside, evidenced by a breakout below an ascending channel pattern and a breach below the 100-day moving average. The selloff, triggered from the 72777.00 level amid overbought RSI conditions, led to a breakdown below the channel. However, at the 67463.07 level, bullish sentiment surrounding the cryptocurrency offered support, leading to a rebound.
Currently, Bitcoin has retraced to the 61.80% Fibonacci Retracement Golden Ratio, serving as an intermediate resistance level. Should selling pressures intensify, a downturn could lead to a retest of the 67463.07 support level. Conversely, a breakout above the Golden Ratio on high volumes could indicate renewed upside interest, potentially targeting the 72777.00 resistance level.
Summary
Bitcoin faces a pivotal moment as it grapples with market uncertainties and technical challenges. The cryptocurrency’s resilience is tested as it hovers below record highs, with attention on key levels like the 61.80% Fibonacci Retracement and the 72777.00 resistance level to gauge its future direction amidst evolving market dynamics.
Sources: Reuters, TradingView
Piece Written By Nkosilathi Dube, Trive Financial Market Analyst
Disclaimer: Trive South Africa (Pty) Ltd (hereinafter referred to as “Trive SA”), with registration number 2005/011130/07, is an authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act, 37 of 2002. Trive SA is authorised and regulated by the South African Financial Sector Conduct Authority (FSCA) and holds FSP number 27231. Trive Financial Services Ltd (hereinafter referred to as “Trive MU”) holds an Investment Dealer (Full-Service Dealer, excluding Underwriting) Licence with licence number GB21026295 pursuant to section 29 of the Securities Act 2005, Rule 4 of the Securities Rules 2007, and the Financial Services Rules 2008. Trive MU is authorized and regulated by the Mauritius Financial Services Commission (FSC) and holds Global Business Licence number GB21026295 under Section 72(6) of the Financial Services Act. Trive SA and Trive MU are collectively known and referred to as “Trive Africa”.
Market and economic conditions are subject to sudden change which may have a material impact on the outcome of financial instruments and may not be suitable for all investors. Trive Africa and its employees assume no liability for any loss or damage (direct, indirect, consequential, or inconsequential) that may be suffered. Please consider the risks involved before you trade or invest. All trades on the Trive Africa platform are subject to the legal terms and conditions to which you agree to be bound. Brand Logos are owned by the respective companies and not by Trive Africa. The use of a company’s brand logo does not represent an endorsement of Trive Africa by the company, nor an endorsement of the company by Trive Africa, nor does it necessarily imply any contractual relationship. Images are for illustrative purposes only and past performance is not necessarily an indication of future performance. No services are offered to stateless persons, persons under the age of 18 years, persons and/or residents of sanctioned countries or any other jurisdiction where the distribution of leveraged instruments is prohibited, and citizens of any state or country where it may be against the law of that country to trade with a South African and/or Mauritius based company and/or where the services are not made available by Trive Africa to hold an account with us. In any case, above all, it is your responsibility to avoid contravening any legislation in the country from where you are at the time.
CFDs and other margin products are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. See our full Risk Disclosure and Terms of Business for further details. Some or all of the services and products are not offered to citizens or residents of certain jurisdictions where international sanctions or local regulatory requirements restrict or prohibit them.
