Despite a short term move below $80k yesterday, after confirmation that US inflation is rising again, Bitcoin has respected the $80.5k areas as 4hr support. The strength from this zone was good.
This leaves us in the same situation as the past few days- $80.5k is support and $82k resistance until broken.
Bitcoin continues to face resistance on each test of $82k, whilst $80.5k area gave another strong reaction on a retest yesterday. With CPI released in a few hours' time I am looking to see if we get a break up or break down from one of these levels. No need to complicate things beyond this for now.
Increased volatility around the weekly close/ open saw Bitcoin reacted well from a retest around $80k but immediately gave a rejection from $82.4k which was the 4hr resistance in the early part of last week.
If Bitcoin sees acceptance above $82.8k (Prev Week High), there could even be a retest of the Yearly Open in the $88k area before the end of this month. $79k - $78k also has my interest over the coming days. Some important market data is being released this week, so it will be interesting to see how the next few days unfold.
Yesterday we saw Bitcoin accept above $80.7k (Monday High) on the 4hr time frame, which is the move we were watching for bullish confirmation, but this ended up being fake-out with immediate acceptance back below. This is not surprising with the lower volume weekend.
This puts BTC back into the key 4hr range of $79.5k - $80.7k. Today I will be watching to see whether increased volatility heading into the Weekly Close/ Open will give a higher volume break from this range.
Bitcoin consistently respected the 4hr support at $79.5k yesterday, but as I mentioned- until $80.7k (Monday High) is reclaimed, I see no reason to be sure of new local highs. Reasonable to assume we see low volume over the weekend, particularly over the next 24 hours.
Breaking $79.5k or $80.7k are the triggers for which direction the next trend is.
After Bitcoin lost $80.7k (Monday High) as support on the 4hr chart, we quickly saw the move to retest the $79k area as expected. We can see that the 4hr support now is $79.5k (Prev Week High) with each of the last 4 candles testing and holding above this.
I still do not rule out a retest closer to $78.5k, where we have the Weekly Open and significant demand from last weekend's price action. I would expect this before new local highs, but a 4hr reclaim of $80.7k would renew the bullish momentum.