Bitcoin Technical Analysis – ETF optimism boosts the crypto market

Fundamental
Overview

Bitcoin has rallied
steadily since the benign US CPI report last week as the hawkish expectations
subsided and the market switched its focus from inflation back to growth. This
triggered a positive risk sentiment which is generally positive for the cryptocurrency.
Late on Monday, we got the news that the SEC might greenlight spot ether ETFs
ahead of its first deadline later this week. The consensus was that the funds
would likely not be approved.

Bitcoin Technical
Analysis – Daily Timeframe

On the daily
chart, we can see that Bitcoin has rallied strongly after breaking above the
key 67275 level. The next target should now be the cycle high at 73835 although
we might see first a pullback before another rally. For now, we are still
trading inside the big range between the 60000 support
and the 73000 resistance.

Bitcoin
Technical Analysis – 1 hour Timeframe

On the 1 hour
chart, we can see that we have a nice support zone around the 68275 level where
we can find the confluence
of the trendline
and the 61.8% Fibonacci
retracement level. If we get a pullback to the trendline, we can expect the
buyers to buy the dip with a defined risk below the trendline and target a
rally into the cycle high.

The sellers, on
the other hand, will want to see the price breaking below the trendline and the
67275 level to invalidate the bullish setup and position for a drop back into
the 60000 support. The red lines indicate the average
daily range for today.

Upcoming
Catalysts

Today we have the FOMC Minutes late in the day although it’s
unlikely to be market moving. Tomorrow, we will get the US PMIs and the latest US
Jobless Claims figures.

This article was written by Giuseppe Dellamotta at www.forexlive.com.