(MENAFN- DailyFX) Bitcoin Talking Points:
- Bitcoin stabilizes above $21,000 psychological support
- Tomorrow's economic docket could assist in the catalyzation of price action as PCE, Michigan sentiment and Fed Chair Jerome Powell's speech take center stage
- USD strength and rising rates continue to pose a threat to major cryptocurrency
Fundamental Factors Threaten Technical Levels for Bitcoin's Next Move
A topic that has been discussed in detail over the past few months and continues to pose a threat to digital currency is that of higher interest rates and elevated price pressures.
Six months into the invasion of Ukraine and the same fundamental risks initially responsible for driving Bitcoin , Ethereum and other major cryptocurrency lower continue to influence speculative assets .
Visit DailyFX to Learn About the Role of Central Banks in Global Markets
With the US Federal Reserve and other global central banks adopting an aggressive stance against rampant inflation, crypto remains susceptible to economic data that serves as a guide for monetary policy as well as for future growth prospects.
This has placed this year's annual Jackson Hole Economic Symposium in the spotlight. With markets gearing up for Core PCE, Michigan sentiment and Fed Chair Jerome Powell's speech, Bitcoin and its counterparts aren't in the clear just yet.
DailyFX Economic Calendar
Bitcoin Technical Analysis
While the bearish trend has been in play since peaking in November last year, BTC/USD has been guided by technical support and resistance that has assisted in driving both the short and longer-term move.
From a technical standpoint, a break of the bear flag formation allowed sellers to drive prices lower before finding support just above the 26 July low that capped the downward move at 20,700. With buyers determined to hold above 20,000, a rebound off support as bulls attempt to move closer towards prior trendline support turned resistance at 22,834.
If bulls can push past this level, the next level that may come on the radar rests at 23,705 with a break above 24,000 bringing the 14.4% Fibonacci of the Nov 2021 – June 2022 move into play at 24,955.
Bitcoin (BTC/USD) Daily Chart
Chart prepared by Tammy Da Costa using TradingView
To learn more about price action or chart patterns, check out our DailyFX Education section.
Meanwhile, the four-hour chart below further highlights the range between 20,769 and 21,892 that has held both bulls and bears at bay.
Bitcoin (BTC/USD) Four-Hour Chart
Chart prepared by Tammy Da Costa using TradingView
If prices fall below 20,000 and below trendline support at 19,605, the July low could form additional support at 18,905 with the next zone forming at the 18,000 psychological level.
--- Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
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