Cryptocurency markets sharply retreated from March highs due to a sell-off in risk assets, amid surging US bond yields and a strengthening US dollar.
Some positive news surfaced over the weekend that Grayscale Investments CEO Michael Sonnenshein sees a possible launch of a bitcoin ETF, with the US Securities and Exchange Commission approving an application for the Teucrium Bitcoin Futures ETF earlier this month.
From the technical perspective, bitcoin may encounter a near-term rebounding opportunity with a double bottom pattern.
Bitcoin - Daily
There's a potential rebounding at the lower band of the ascending channel.(click to see the enlarged chart)
Key technical elements:
- The four hourly chart forms a potential double bottom pattern, suggesting an imminent rebounding opportunity with an intraday resistance at 41,578, which is the Fibonacci retracement at 23.60% (connecting from the high on the 11 November to the low on the 24 January)
- The ascending channel is intact in the daily chart, with potential support at the lower band, overlapping with the support in the 4 hourly chart.
- Both RSI and Stochastic point up, with Stochastic falling into the overbought territory, indicating a near-term bearish momentum fades off.
Key price levels:
Resistances: 41,578, 44,000, 47,400
Disclaimer: CMC Markets is an order execution-only service. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.