4 min read Friday’s US jobs report showed the economy shed 23,000 jobs in July, and the dollar has since slipped to a two-month low as bets on further Fed tightening were cut back. Bitcoin (BTC) has barely responded.
Bitcoin on the 4-hour chart
BTC has been consolidating in the same range since June, and as we covered when it last pressed this ceiling in July, price is again approaching the 65,000 to 66,000 resistance zone.
The previous test came with a large volume spike, and the RSI is moving into its bullish range. The accumulation/distribution line is still in a heavy downtrend, though, despite spot Bitcoin exchange-traded funds (ETFs) taking in roughly $865 million over five straight sessions to 7 August. A break higher on that line, plus another volume spike on the next test, is what we’d want to see before a breakout. Below, 60,000 remains the major support.
Bitcoin’s 4-hour chart showing the 65,000 to 66,000 resistance zone, the 60,000 support area below, and the accumulation/distribution line at the bottom.
Bitcoin on the 1-hour chart
There’s a subtle bearish divergence between the RSI and price here, which fits the weaker 4-hour reading. The 200 exponential moving average sits just below at 64,515, alongside a horizontal support level.
Price is approaching local support around 64,800. If that fails, we could potentially see a move down to 64,300, and that gap is what we’re watching on the downside. A break above 65,500 with rising volume, together with that break higher on the accumulation/distribution line, could open the way into the next high timeframe resistance zone.
The 1-hour chart with the 200 exponential moving average, the 64,800 support zone and the 64,300 level below it.
Trading involves risk.
Author
Risk Disclaimer
The content provided here is for informational purposes only. It is not intended as personal investment advice and does not constitute a solicitation or invitation to engage in any financial transactions, investments, or related activities. Past performance is not a reliable indicator of future results.
The financial products offered by the Company are complex and come with a high risk of losing money rapidly due to leverage. These products may not be suitable for all investors. Before engaging, you should consider whether you understand how these leveraged products work and whether you can afford the high risk of losing your money.
The Company does not accept clients from the Restricted Jurisdictions as indicated in our website/ T&C. Some services or products may not be available in your jurisdiction.
The applicable legal entity and its respective products and services depend on the client’s country of residence and the entity with which the client has established a contractual relationship during registration.
