Bitcoin, Ethereum, and tech stocks are trading higher after a positive day for risk assets.

With Eurozone inflation showing no sign of easing, another heated CPI print has placed additional pressure on the ECB (European Central Bank). As both the ECB and the Federal Reserve gear up for the next round of rate hikes, markets shrugged off the inflation data that has been driving price action for a large portion of the year.

As Bitcoin prices rise back above $20,000, key psychological levels will likely continue to provide important levels of support and resistance for the upcoming move. After breaking below the bear flag pattern last week, BTC/USD continued lower before finding support at around the $19,500 mark.

With the descending trendline from the August move forming an additional barrier of resistance at $20,500, a tight range has begun to form once again.

If bulls manage to drive prices higher, a break of the 50-day MA (moving average) at $22,343 and a surge in volatility could fuel the upside move. If the above-mentioned levels are cleared, a retest of the August high at $25,212 may allow for a temporary resumption of the uptrend.

Bitcoin (BTC/USD) Daily Chart

(Click on image to enlarge)

Chart prepared by Tammy Da Costa using TradingView

In contrast, a move below $19,500 could allow for a probable retest of the July low at $18,905.55 with the next level of support at the June low of $17,592.78.

With the weekly chart highlighting Fibonacci levels from both the 2020 – 2021 and the 2022 move, the 78.6% retracement of the former move could further assist in capping the downward move at $17,792 while the 14.4% retracement of the 2022 move steps in as another firm layer of resistance at $24,995.

Bitcoin (BTC/USD) Weekly Chart

(Click on image to enlarge)

Chart prepared by Tammy Da Costa using TradingView

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