The battler of a crucial level
From the daily chart we can easily see that Bitcoin is now at an extremely strong support. The level of around 38 884 USD is a Point of Control (POC) and the chart has retraced to this level on several occasions. Moreover, it is also a lower trendline of a channel, which has once again, proven to be important as a support.
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Thus, this is a level where I can imagine Bitcoin reacting heavily, which, obviously can be to either side. If I was about to choose one side, I think that it would make more sense to move up from that level. The fight for this level is even more apparent at a 4-hour chart. Yet, it is very important to note that next week we will see a Fed meeting (Tuesday and Wednesday). This even has without any doubt the power to help with the movement to either side.
1D chart of Bitcoin, Source: Author’s analysis, tradingview.com
What can we say from the shorter timeframes?
Looking at the 4-hour chart, we can see that Bitcoin is forming a falling wedge formation. It has tested the lower trendline for over 4 times and, as of now, is still at its POC. The overall picture of this timeframe, as well as the daily chart, is similar in my view, meaning that I am more likely to believe that the upward movement is coming. For that to occur, Bitcoin needs to hold the support of 38 000 dollars as such, since once it falls below, more downside can be coming.
4h chart of Bitcoin, Source: Author’s analysis, tradingview.com
Fed meeting, which is occurring next week, is likely to bring a rate hike of around 0.5%, which is not really scary, but it is also not something that is very common. That is why this event will have probably a huge impact on the movement of Bitcoin and can be a significant nudge to either direction.
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