Bitcoin Talking Points
- Bitcoin bulls determined to clear 24,000
- US CPI overshadows Coinbase losses
- Ethereum rises above $1,800 after gaining around 8% on the day
Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) have benefited from risk-on sentiment after US CPI showed signs of easing. With a hawkish Federal Reserve committed to driving inflation back towards the 2% target, a softer print could result in a less aggressive rate hike at the September FOMC.
DailyFX Economic Calendar
US Equities Follow Crypto Higher
With US Dollar weakness supporting a rebound for risk-assets, the tech heavy Nasdaq, S&P 500 and the Dow advanced by approximately 2.5%, 1.9% and 1.5% respectively while the DXY declined by 1.30% (at the time of writing). For digital assets, a $1.1 Billion loss for crypto giant Coinbase provided a gloomy start to the day.
Bitcoin, Ethereum & Alt-Coins: A Brief History of Crypto Winters
However, upon release of the economic data, BTC/USD rose by approximately 4.7% before being rejected by psychological resistance at $24,000.
Bitcoin (BTC/USD) 5 Min Chart
Source: TradingView, Chart by Tammy Da Costa
In this week’s Bitcoin forecast I highlighted the levels of resistance that remain key for a continuation of the upside move. As price action remains confined by key Fibonacci levels from the June move, support and resistance remain at $22,995 and $24,664.
Bitcoin (BTC/USD) Daily Chart
Source: TradingView, Chart by Tammy Da Costa
With the total crypto market cap rising back above $1 Trillion, Bitcoin prices remain above the 50-day MA (moving average) with a break of the range raising the prospects for further gains.
Source: TradingView
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Bitcoin Key Levels:
Support:
S1: 22,995 (61.8% Fib)
S2: 21,701 (50-day MA)
S3: 20,000 (Psych level)
Resistance:
R1: 24,664 (50% Fib)
R2: 25,352 (200-day MA)
R3: 28,000
--- Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
