Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) have benefited from risk-on sentiment after US CPI showed signs of easing. With a hawkish Federal Reserve committed to driving inflation back towards the 2% target, a softer print could result in a less aggressive rate hike at the September FOMC.

DailyFX Economic Calendar

US EQUITIES FOLLOW CRYPTO HIGHER

With US Dollar weakness supporting a rebound for risk-assets, the tech-heavy Nasdaq, S&P 500 and the Dow advanced by approximately 2.5%, 1.9% and 1.5% respectively while the DXY declined by 1.30% (at the time of writing). For digital assets, a $1.1 Billion loss for crypto giant Coinbase (COIN) provided a gloomy start to the day.

Bitcoin, Ethereum & Alt-Coins: A Brief History of Crypto Winters

However, upon release of the economic data, BTC/USD rose by approximately 4.7% before being rejected by psychological resistance at $24,000.

Bitcoin (BTC/USD) 5 Min Chart

(Click on image to enlarge)

Source: TradingView, Chart by Tammy Da Costa

In this week’s Bitcoin forecast I highlighted the levels of resistance that remain key for a continuation of the upside move. As price action remains confined by key Fibonacci levels from the June move, support and resistance remain at $22,995 and $24,664.

Bitcoin (BTC/USD) Daily Chart

(Click on image to enlarge)

Source: TradingView, Chart by Tammy Da Costa

With the total crypto market cap rising back above $1 Trillion, Bitcoin prices remain above the 50-day MA (moving average) with a break of the range raising the prospects for further gains.

Source: TradingView

BITCOIN KEY LEVELS:

Support Resistance

S1: 22,995 (61.8% Fib) R1: 24,664 (50% Fib)

S2: 21,701 (50-day MA) R2: 25,352 (200-day MA)

S3: 20,000 (Psych level) R3: 28,000

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