Market Spotlight: Bitcoin Channel Trade

market-spotlight:-bitcoin-channel-trade

BTC Approaching Key SupportThe fall back in risk appetite over the last two weeks has hit crypto assets hard. BTC has reversed from recent highs around 4800, taking out two key support levels as both MACD and RSI turn lower. BTC is now approaching a major support region at the rising channel low and 37030 support level. This region also marks the completion of the symmetry pattern with the prior corrective in the current bull channel. With this in mind, bulls can look to trade a reversal from this area if we see price action confirmation, targeting a move back up through 41510 and 45405 with the channel top and 52260 the main target.Keep An Eye OnRisk flows and USD flows remain key. Headlines around the Ukraine-Russia situation remain very bleak for now. However, should see any improvement in the narrative, such as fresh focus on peace talks, this will likely help lift risk assets somewhat, allowing BTC to recover. Today’s US CPI release will also be key. Should data undershoot expectations this would likely create some scope near term for a move higher.

Source: Tickmill

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