The markets went into
risk-off on Tuesday after the strong US Consumer Confidence data which triggered an aggressive
rise in long term Treasury yields. The report however just showed that the
labour market remains resilient which is good news for growth and not
necessarily bad news for inflation.

The month-end flows could
also be skewing the picture. The negative sentiment weighed on Bitcoin although
much less than in other markets, which might also be a signal that as soon as
the sentiment changes, we could see some more upside.

Bitcoin
Technical Analysis – Daily Timeframe

On the daily chart, we can
see that Bitcoin is testing the 67275 support.
This is where we can expect the buyers to step in with a defined risk below the
level to position for a rally into the cycle highs. The sellers, on the other
hand, will want to see the price breaking lower to open the door for a drop
into the 60000 support next.

Bitcoin Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can
see that we have some nice confluence
around the support with the trendline
and the 38.2% Fibonacci
retracement level. This should technically strengthen the support zone and
give the buyers a bit more conviction for a bounce. A break below the trendline,
on the other hand, will likely give the sellers more control and possibly
trigger a bigger correction.

Bitcoin Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can
see that the first resistance comes around the 68861 swing level. A break above
that level should open the door for a rally into the 70639 swing high.

Upcoming
Catalysts

Today we will see the latest US Jobless Claims figures, while tomorrow we
conclude the week with the US PCE report.

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