- December 10, 2024
- Posted By: james w
- Category: Market News
BTCUSD Bearish Momentum on H4 Timeframe
BTCUSD, often referred to as “Digital Gold,” represents the trading pair of Bitcoin (BTC) and the US Dollar (USD). Bitcoin, the leading cryptocurrency by market cap, is known for its decentralized nature and finite supply, while the US Dollar remains the world’s dominant reserve currency. The BTCUSD pair is a favorite among traders due to its high volatility and significant role in bridging traditional and digital finance.
Today, BTC USD is influenced by a mix of fundamental drivers. The upcoming NFIB Small Business Optimism Index and Bureau of Labor Statistics reports on productivity and labor costs are crucial for gauging US economic strength. Higher-than-forecast optimism among small businesses or robust productivity growth can bolster USD strength, potentially pressuring BTC/USD lower. Meanwhile, OPEC’s influence on energy markets can indirectly impact inflation expectations, influencing broader financial markets, including cryptocurrencies. Amid economic uncertainties, Bitcoin’s role as a hedge against inflation remains relevant, but strong US data could challenge its appeal.
Chart Notes:
• Chart time-zone is UTC (+02:00)
• Candles’ time-frame is 4h.
The H4 BTC USD chart highlights a bearish price action pattern, with consecutive negative candles signaling a downward momentum. After previously reaching an all-time high, BTC/USD has retreated and is now trading at $96,686.26, aligning with the 0.618 Fibonacci retracement level. This indicates a critical support zone, with further downside likely if the level fails to hold. The Williams %R indicator is oversold, suggesting potential short-term relief; however, the bearish trend remains dominant unless a clear reversal signal emerges. Traders should watch for a break below the Fibonacci level or a reversal signal supported by volume.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.