Bitcoin bulls received a shot in the arm as a much better than expected US jobs figure was released on Friday. The $BTC price gained over the weekend as a result. However, technical indicators are signalling the potential for a lot more choppiness to come for Bitcoin. The number one cryptocurrency is not out of the woods yet.
Latest jobs report allays recession fears and sparks short term upside for $BTC
Fears of an impending U.S. recession may have receded slightly as a much better than expected jobs report was published on Friday. The 254,000 newly created jobs beat the 140,000 forecast. That said, revisions to the official figures are quite common in recent times, so it will be interesting to note whether this figure will stay as is.
Nevertheless, at least for the time being, Bitcoin is slowly moving up in price, with bulls perhaps more secure in the knowledge that a recession may not be arriving quite yet.
Short term reversal for $BTC?
Source: TradingView
The short term price chart for $BTC looks reasonably encouraging at first glance. The price is moving up again inside another ascending channel. However, a wick to the upside early on Monday has tagged the 0.618 Fibonacci, and also the top of the channel, which does have the potential to signal a short term reversal. In addition, the Stochastic RSI at the bottom of the chart is signalling that a top might have been found for now. This is also the case on the 8-hour chart.
Medium term battle between bulls and bears
Source: TradingView
Moving out into the weekly time frame, it can be seen that the Bitcoin price has begun the new week in positive fashion, with a more than 1% move to the upside. However, for the bears, last week’s red enveloping candle is going to do battle with its reasonably long wick to the downside, which is in the bulls’ favour.
The two indicators at the bottom of the chart are also split in favour of both bulls and bears. The Relative Strength Index (RSI), the bottom-most indicator, is showing a higher high, and the indicator is still pointing up - a positive for the bulls.
Having said that, for the bears, the Stochastic RSI is displaying a potential roll over of its two indicators. Should this roll-over confirm at the end of this week, this would signal an end to upside price momentum. Despite this, the indicator has made a higher high, and a scenario exists where a higher low could form, leading to an eventual swing back to the upside.
Longer term - bulls to take control?
Source: TradingView
As one moves out into even higher time frame charts, the longer term picture can become clearer. The two-week chart shows an indecision candle for the previous fortnight. However, at the bottom of the chart, the Stochastic RSI is still displaying a cross up for the two indicators lines. If these can get above the 20 level by the end of the next couple of weeks, this will have a more powerful effect than any of the previously mentioned time frame signals, and perhaps herald an extended period of control for the bulls.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
