Range trade - Bitcoin
Bitcoin ran into a wall of resistance as it moved towards the upper bound of its range. The dollar surge as well as risk sentiment souring has been a headwind for the digital asset. Wednesday’s CPI number out on Wednesday will likely impact the crypto space. Bitcoin has a very high correlation with US yields (essentially a rates proxy). A number above 9% could see yields and the dollar jump hitting riskier assets such as Bitcoin. Vice versa for a headline print below 8.5%. Market is expecting 8.8%. There has been some negative divergence on the RSI, which likely saw sellers run out of buying momentum. The 21-day EMA is also acting as dynamic resistance. Depending on whether you’re a bull/bear you could also be seeing a double bottom/top. Price levels to watch are 22k on the upside and 18.5k on the downside.
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