The following is top to bottom daily Bitcoin technical analysis for the week of August 29th to 2nd of September, including commentary on the most important fundamental developments.
29 August, AtoZForex – With little understatement about future Fed policy from July FOMC minutes, market participants turned their heads to Janet Yellen’s speech at Jackson Hole. Unfortunately, her speech proved to be a non-event. But before market had the time to disappoint, Fed Stanley Fisher shed some light hinting of at least one Fed rate hike until the end of this year.
Nonetheless, Bitcoin did not seem to be directly affected by Fed Stanley Fisher comments at Jackson Hole and continued to trade based on technical developments. Next important fundamental development will be on Friday, US Non-farm payrolls report.
Weekly Bitcoin technical analysis
From the bigger Bitcoin technical analysis picture, the instrument remains in an overall uptrend but has recently fallen into a correction phase after a four week bullish rally from 437 to 743.
Since Monday last week the price has rebounded from a nearby resistance level at 590 and the instrument continues its sideway movement between Fibonacci 136.2% and 161.8% retracement zones at 550 and 605 levels respectively.
Daily Bitcoin technical analysis
From Daily Bitcoin technical analysis perspective, bullish pressure continues to increase based on daily MACD, albeit quite slowly. Indicating that the correction phase has not ended yet.
With overall bullish bias in place, a brake of the consolidation range would shift the focus towards 614, then 630 and lastly to 646. However, a weekly close below Fibonacci 136.2% retracement level at 550 would prove the view wrong.
Hourly Bitcoin technical analysis
From price action perspective today’s Bitcoin technical analysis favours short positions. The instrument continues to form lower lows and lower highs. At the moment the price approaches the nearby high and risk/reward favours shorting the pair from 579 area towards 566.
Given that the instrument is trending in a consolidation, a break of previous high would shift the focus back to 590 resistance level once again.
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