Bitcoin Market Awaits Inflation News
When analysing the long-term BTC/USD chart on May 16, we constructed a roadmap for Bitcoin's price. This roadmap appeared as an expanding fan consisting of a median line with support levels below it and resistance levels above it.
During our last analysis of the BTC/USD chart on June 20, we noted that:
the price had dropped to the Support 1 line;
there was a potential threat of breaking through this support.
How has the market situation changed over the past week? We have made slight adjustments to some elements on the BTC/USD chart to better align them with key events dictated by the market itself.
As anticipated, Bitcoin's price broke through the Support 1 line after a series of weak bullish rebounds.
The price fell below 59,000 to the Support 2 line, which is part of the roadmap, and formed a bullish engulfing pattern (indicated by an arrow), signalling strong demand.
As shown by the technical analysis of the BTC/USD chart today:
Bitcoin's price is supported by the Support 2 line;
the median line of the red channel acts as resistance;
confined within this triangle, the price is awaiting the US inflation news, which will be released at 15:30 GMT+3 today.
What will be the next move for Bitcoin's price?
Markus Thielen, founder of 10x Research, suggests that the BTC/USD rate could fall to 50,000. This scenario will become more likely if the market's reaction to the inflation news leads to a strengthening of the US dollar.
Read more: https://fxopen.com/blog/en/oa-bitcoin-market-awaits-inflation-news/
Text source: Forex Trading Blog
