Bitcoin Technical Analysis – Risk of a selloff is high

<p>Bitcoin
has been struggling recently as the monetary conditions started to tighten more
with the US Dollar gaining across the board and global bond yields rallying.
Strong data are making the market to lean on the more hawkish side as the Fed
kept all the options on the table at the last week’s FOMC meeting. We are also
at peak euphoria and a turnaround in fundamentals can make Bitcoin to selloff
hard. </p><p>Bitcoin Technical Analysis
– Daily Timeframe</p><p>On the daily chart, we can see that Bitcoin could
sustain a break above the 31K level and eventually got stuck in a range.
Recently, we got a break below the support level
and the price started to range at a lower level. The moving averages have crossed
to the downside switching the bias to bearish and we can see how the sellers
leant on the red 21 moving average to position for more downside. </p><p>Bitcoin Technical Analysis
– 4 hour Timeframe</p><p>On the 4 hour chart, we can see that we recently
got what looks like a fakeout above the 29500 <a href="https://www.forexlive.com/Education/technical-analysis-polarity-20220408/">support turned resistance</a>. This
should be another bearish signal and therefore give the sellers even more
conviction. The buyers will need to see the price breaking above the resistance
again to start piling in and target the 31K resistance. </p><p>Bitcoin Technical Analysis
– 1 hour Timeframe</p><p>On the 1 hour chart, we can see that we
have a minor support level given by the last swing low at 28900. The sellers
are likely to lean on the red 21 moving average to position for a fall into the
28475. More conservative sellers may want to wait for the price to take out the
swing low first to jump onboard and ride the selloff into the support. The
buyers, on the other hand, will need to see the price making a new higher high
first to start getting some conviction for more upside. </p><p>Upcoming Events</p><p>Today
the market will be focused on the US Jobless Claims and ISM Services PMI data,
while tomorrow all eyes will be on the US NFP report. Strong data should lead
to a more hawkish market pricing and it’s likely to weigh on Bitcoin, while
weak readings should cause recessionary fears across the market ultimately
weighing on the risk sentiment and the cryptocurrency. </p>

This article was written by FL Contributors at www.forexlive.com.