Bitcoin Price Key Highlights
- Bitcoin price has been stalling for quite some time, and zooming in to the 1-hour chart shows that it is hitting resistance at an area of interest.
- Applying the Fib tool on the latest swing high and low reveals that bitcoin price is around the 38.2% to 50% levels at the moment and might be due for a drop to the previous lows.
- These Fib levels coincide with the moving averages and a former support area.
Bitcoin price is having trouble making headway past the 50% Fibonacci retracement level, which lines up with several inflection points.
Technical Indicators Signals
The 100 SMA is above the 200 SMA for now but a downward crossover looks ready to take place, signaling a potential turn lower. In addition, stochastic is heading south so bitcoin price might follow suit. If so, price could head back to the previous lows around $407-410.
RSI is treading sideways, suggesting that the consolidation could carry on. Bitcoin price appears to have encountered a weak support zone at $412, which might continue to keep further losses in check.
Still, if bullish pressure returns, bitcoin price could break past the 50% Fib and go for a test of the next level at $420, which also lines up with a near-term support zone.
The main event risk for today is the NFP release, as this might lead to stronger volatility for the US dollar. Analysts are expecting to see a 206K gain in hiring, lower than the previous month’s 242K rise, but a higher than expected result could spur prolonged rallies for USD.
On the other hand, a disappointing result could allow bitcoin price to gain the upper hand and take advantage of dollar weakness. A slowdown in employment would confirm that the Fed is likely to keep rates low for much longer, lending support to higher-yielding assets like bitcoin.
Intraday support level – $412
Intraday resistance level – $420
Charts from Bitstamp, courtesy of TradingView