As a seasoned researcher with years of experience navigating the volatile world of cryptocurrencies, I must admit that the recent jobs report has brought a glimmer of hope to Bitcoin bulls, but it’s still too early to pop the champagne.
Enthusiasts of Bitcoin experienced a boost last Friday when unexpectedly strong US job figures were announced. This sparked an increase in the Bitcoin price throughout the weekend. Nevertheless, technical signals suggest that Bitcoin might encounter more market volatility in the future. It’s important to note that Bitcoin has not yet fully navigated through these turbulent waters.
Latest jobs report allays recession fears and sparks short term upside for $BTC
Concerns about an upcoming U.S. economic downturn might have eased a bit following the publication of unexpectedly strong job data on Friday. The reported 254,000 new jobs exceeded predictions of 140,000, which is noteworthy. However, it’s important to remember that adjustments to official figures are quite frequent these days, so we’ll see if this number remains unchanged in the future.
For now, it seems Bitcoin’s value is gradually increasing, giving optimists some confidence that a recession might not be imminent after all.
Short term reversal for $BTC?
From my perspective as an analyst, the immediate BTC price trend appears quite promising initially, with the price surging within another ascending channel. However, a significant spike at the opening of Monday touched the 0.618 Fibonacci level and the upper boundary of this channel, suggesting a possible short-term reversal. Moreover, the Stochastic RSI at the chart’s base hints that we might have reached a temporary peak, a sentiment echoed on the 8-hour chart as well.
Medium term battle between bulls and bears
Looking at the broader weekly perspective, Bitcoin started the new week with a 1% increase. For bearish investors, the previous week’s bearish candle, characterized by a long upper wick, will compete with its long lower wick for dominance. This lower wick, indicating buying pressure, is currently favoring bullish sentiments.
As a crypto investor, I’m observing an interesting balance between bullish and bearish signs on my chart. Specifically, the Relative Strength Index (RSI), situated at the very bottom, is displaying a trend that could favor the bulls. It’s currently showing a ‘higher high,’ indicating a potential increase in buying pressure. Furthermore, the RSI indicator itself is still pointing upward, adding more weight to this positive outlook for the bullish side.
If we’re talking about bears here, the Stochastic RSI seems to be hinting at a possible reversal of its two indicators. If this reversal is indeed confirmed by the end of this week, it could mean the end of the upward price trend. However, it’s worth noting that the indicator has reached a higher high, and there’s a possibility that a lower low might follow, potentially leading to a shift back towards an uptrend.
Longer term – bulls to take control?
Moving to larger time frame graphs can help clarify longer-term trends. For instance, on a two-week graph, we see an indecisive candle from the past fortnight. However, at the base of the chart, the Stochastic RSI still shows a cross up for the two lines, suggesting they might rise above the 20 level within the next few weeks. If this happens, it could have a stronger impact than any signals from shorter time frames and potentially signal an extended period of dominance for the bulls.
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2024-10-07 13:43