Bitcoin has once again reclaimed $69.5k (Monday High) on the 4hr timeframe but is under clear downtrend resistance (Orange line). There is also support being provided from $69.2k area (2021 ATH). This means the price is compressing tighter between these support and resistance levels, so I am seeing which breaks first. A 4hr close above the orange trendline and we could see a quick move back to $72k. Any strong close below $69.2k and $67k is a possibility.
Yesterday we mentioned the importance of the reaction of a retest of $69.5k. The last 4 hour close, just moments ago, came in slightly under $69.2k which means it lost the Monday High as well as 2021 ATH. This increases the chances of a further move down now, and I could be tempted to take a short from here, but with CPI figures due out soon I am happy to wait. Let's see if there is any quick reclaim of $69.5k today.
Bitcoin price action is still being determined by the current geopolitical issues- hints from President Trump that the war may soon be over caused the price of Oil to correct by around 20%, which in turn has helped Bitcoin rally.
BTC is now trading above $69.5k (Monday High) and at the last 4hr candle close it came in just above the 4hr EMA200 which sits at $70.5k currently.
I am looking to see if BTC can consolidate above $70.5k for a potential push towards last weeks highs or, alternatively, what happens if $69.5k is retested.
No surprise to see Bitcoin and crypto being affected by the price of oil currently. After oil hit $110+ at the weekly open, this saw BTC drop temporarily below $66k. Oil has so far retraced to below $100 which has provided Bitcoin with some relief to $68k.
For now, I am watching the Monday Range play out, and I will be looking for $66.9k (Monthly Open) to hold as support on any retest. $69.2k (2021 ATH) remains the next resistance level for BTC to break.
The sell off continued for Bitcoin yesterday and overnight, with the price retesting below $67k. The recent 4hr candles are giving signs that $66.9k (Monthly Open) is 4hr support, and we are starting to see some strength return from this area. The next area of likely resistance from here will be around $69.2k (2021 ATH). The BTC CME price closed the week at $68.2k so this is an area to keep an eye on around the weekly close to determine whether we get any significant CME gap above or below.