- Summary:
- Bitcoin is starting to initiate an intraday rally, with BTCUSD trading at just below $8000 as the USD weakens across board following downbeat NFP data.
The US Dollar is broadly weaker after this afternoon’s downbeat NFP data, and this is starting to show on crypto pairs such as the BTCUSD pair. Bitcoin is presently staging a 5% rally on the BTCUSD pair, with price inching towards the $8000 mark on the day. This price move follows a resumption of the rally that followed the selloff of the last two days.
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Short-term Outlook for BTCUSD
Heading into the weekend, the 4hour chart shows that the selloff of the last two days found a perfect bounce point on the 50% Fibonacci retracement level (7676.53), traced from the short-term swing low of 2 Jan to the swing high of Jan 8. The cross of the Stochastics lines in the oversold region confirms the rally from the 50% Fibonacci retracement level.
Going forward, continued upward push could lead Bitcoin towards the 23.6% Fibonacci retracement level at 8095.35 (previous low of 24 Sep and 18 Nov), with possibility to push towards the medium-term resistance at 8550 (previous high of Oct 10 and Nov 16). A break above this area sends BTCUSD towards the 9029 and 9400 major support-turned resistance areas.
However, Bitcoin remains technically in a long-term downtrend. The price areas mentioned may serve as rally points on which sellers may decide to resume the downtrend. This should be kept in mind by other traders, with special focus on 8550, 9029 and 9400 as possible areas where selling on rallies could take place.