Bitcoin (BTC) continues to make lower high after lower high. When can we expect a decent bounce? Does this extended roll-over signify the top?
Tariffs and poor inflation figures dampen the market
The market has the jitters again. First it was President Donald Trump and his swingeing tariffs, and then it was the release of inflation figures that were worse than expected. With this kind of a backdrop, Bitcoin is struggling to maintain buoyancy.
The US traditional markets open a bit later on Thursday and it will be interesting to see what kind of a reaction there will be to the new inflation figures now that the market has had more time to digest them. Yesterday, when the figures were released, the S&P did fall back to 6,000, but managed to finish the day back at 6,050. So far today, Bitcoin has wiped out all its gains made on Wednesday and is sitting at horizontal support at just below $96,000.
The worsening inflation figures in both CPI and Core CPI are not good for risk assets such as Bitcoin. It means that the Federal Reserve has much less chance of making any rate cuts. Despite President Trump calling for them.
A long series of lower highs and lower lows
Source: TradingView
The short-term time frame shows the $BTC price sitting on support, but having made quite a series of lower highs and lower lows. A bounce from here and a subsequent breakout of the descending wedge might do wonders for market sentiment, but if the support does not hold, the bulls will have to go back to biting their nails.
All well on the monthly time frame
Source: TradingView
On the much higher time frame of the monthly, the current price action does not appear to be much of a concern. The aforementioned horizontal support can be seen as quite major. As long as this monthly candle can close above this level at the end of February, all would be well.
In fact, as long as the candle closes above the ascending trendline by the end of the month, this would also probably be more bullish than bearish. A close below the ascending trendline though could be a major concern.
At the bottom of the chart, the Stochastic RSI is currently showing a cross down of the indicator lines. This will need to reverse, with the 80.00 level becoming support.
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