Bitcoin Corrects Suddenly, But Bias Remains Bullish Ahead of Busy Day


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Investing.com – After rising in the first part of the day, reaching a 4-month high of $21,632 around 3 p.m. CET, Bitcoin corrected sharply, falling in less than two hours to a low of $20,645, a drop of 4.4% approximately.

As of this writing at 4:30 a.m. CET Thursday, the is showing a 2.33% 24-hour decline, while still holding a +14% gain over a week.

It should be noted that the fall in Bitcoin yesterday corresponded to a general decline in risk appetite, as we have seen in particular on the American indices, the having fallen by 1.56% while the lost 1.81%.

This rise in risk aversion, linked to worse than expected US statistics, has also increased appetite for the Dollar, considered a safe haven, which has also negatively impacted BTC/USD.

Turning to Thursday, investors positioned in bitcoin and risk assets in general will need to keep a close eye on housing starts, building permits, jobless claims and the Philadelphia Fed Index at 2:30 p.m.

Bitcoin technical point

From a chart perspective, note that Bitcoin’s correction on Wednesday afternoon does not challenge the underlying positive bias on the daily chart, which will remain the case as long as the cryptocurrency maintains the major psychological threshold of $20,000. .

Bitcoin (BTCUSD) - Daily Chart

In the event of a break below this key threshold, the 200-day moving average currently at $19,555, then the $19,000 zone, and the $18,300 threshold will be the next potential supports to watch.

On the upside, the $21,500 area is the first significant chart resistance, after which BTC should aim for $22,000 and then the September 13, 2022 high near $22,750.



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