Cryptocurrency talking points:
Bitcoin's recovery stalled after a two-week rally
BTC/USD enters the confluence zone between key Fibonacci levels
The weak dollar has boosted demand for alternative assets
Bitcoin's rally is muted by technical resistance
Bitcoin traded lackluster after failing to gain traction above $24,000. Risky assets rebounded from their recent rout, pushing the total market capitalization of cryptocurrencies back above $1 trillion, as the Fed's recent interest rate decision pushed real yields lower.
After two straight weeks of gains, BTC/USD is up about 17% in July, snapping a three-month losing streak that began in late March.
At the time of writing, the daily chart below highlights two Fibonacci levels that provide immediate support and resistance at $22,808 and $24,818, respectively, with the 50-day moving average (moving average) providing additional support at $21,302. Since low candlelight suggests indecision, breaking out of the current range could help fuel the next big move.
Daily chart for Bitcoin (BTC/USD)
With price action trading comfortably above $20,000, a breakout of 200 MA and the formation of a potential MACD cross below the zero line (in a weekly time horizon) could indicate that the bearish move may have run out of steam. The 23.6% Fibonacci (March-to-June move) remains unchanged, breaking back to the psychological level of $26,000.
While market participants continue to price in interest rate expectations, the release of the NFP (non-farm payrolls) report could provide an additional catalyst for price action as the Fed monitors employment data for signs of a potential recession.