Bitcoin Outlook: BTC/USD Boom or Bust as Prices Retreat From ATH?
Bitcoin (BTC/USD) Outlook:
- Bitcoin (BTC/USD) prices pull back slightly after climbing to a fresh ATH
- Fundamentals continue to weigh on risk sentiment
- Technical factors continue to support the upward trajectory, at least for now
Bitcoin prices have recently pulled-back from the recent high, at around $67,000 after the release of the futures ETF last week.
With inflationary pressures on the rise, low global interest rates have resulted in an increase in the institutional adoption of digital assets which have supported the upward trajectory pertaining to digital assets since last year.
However, as major cryptocurrency’s continue to face scrutiny from China and other regulators, an increase in geopolitical tensions and the release of high impact economic data (inflation data, GDP figures and unemployment) may further assist in the catalyzation of price action for the imminent move.
DailyFX Economic Calendar
Bitcoin Technical Analysis
After climbing to a new ATH, failure for bulls to drive prices to the key psychological level of $70,000 enabled the bears to drive prices back towards the $60,000 level.
With markets now pricing in the potential of rate hikes, technical factors continue to weigh on BTC/USD, at least for now.
At the time of writing, BTC/USD currently continues to test the key psychological level of $60,000 which continues to provide both support and resistance for the pair.
Meanwhile, on the daily time-frame, prices have now fallen below the 50-day moving average with a MACD (moving average convergence/divergence) crossover above the zero line, suggestive that further downside may be expected provided that the MACD crosses below the line.
Bitcoin (BTC/USD) Daily Chart
Bitcoin Key Levels
In order for bullish continuation to be possible, Bitcoin bulls will need to break back above both the $62,000 mark and the prior high of around $65,000
Contrary to this, bears will need to drive prices below $54,000 which could result in a retest of $50,000
--- Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.