Bitcoin erases all the weekly gains as growth concerns lead to widespread risk aversion. What's next?

<p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">Bitcoin erased all the weekly gains in the past couple of days as widespread risk aversion weighed on the crypto market. The risk-off flows started late Wednesday following reports that the US military was reducing its troop presence at bases in the Middle East, while the State Department ordered staff cuts at diplomatic posts amid rising security risks and the possibility of renewed military action against Iran.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">The selling pressure then intensified after The New York Times reported that the US and Israeli militaries had developed detailed plans for potential strikes on Iran following the US midterm elections. The report also said that the US was building up its military presence which is expected to be fully deployed by early November.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">The prospects of another direct conflict between the US and Iran amid increasing growth concerns and a hawkish Fed are all strong bearish drivers for the crypto market.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">The focus today will be on the US Flash PMIs as it could be another major catalyst given the growth concerns.  Weaker-than-expected data could intensify growth fears, weigh further on risk sentiment and trigger another selloff in Bitcoin. Strong data, on the other hand, could alleviate fears in the near-term and lead to a relief rally, although it wouldn’t change the bigger picture.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;"> </p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">BITCOIN TECHNICAL ANALYSIS – DAILY TIMEFRAME</p><p></p><p>On the daily chart, we can see that <a href="https://www.tradingview.com/symbols/BITCOIN/" rel="follow" style="color: rgba(70, 120, 134, 1); text-decoration: underline;">Bitcoin</a> pulled back to the key 80,000 support. The buyers will likely continue to step in around the support, with a defined risk below it, to keep targeting a rally into the 98,000 level. The sellers, on the other hand, will want to see the price breaking lower to pile in for a drop into the 75,000 level next.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">BITCOIN TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME</p><p></p><p>On the 4 hour chart, we can see the price probed above the 84,000 resistance before erasing all the gains. If the price gets there again, we can expect the sellers to step in around the resistance, with a defined risk above it, to keep targeting a break below the support. The buyers, on the other hand, will look for a break higher to increase the bullish bets into the 87,400 level next.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">BITCOIN TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME</p><p></p><p>On the 1 hour chart, there’s not much we can add here as the buyers will have a better risk to reward setup around the support, while the sellers will need a break to open the door for new lows. The red lines define the <a href="https://investinglive.com/Education/trading-tip-know-the-average-daily-range-adr-20220207/" rel="follow" style="color: rgba(70, 120, 134, 1); text-decoration: underline;">average daily range</a> for today.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">UPCOMING CATALYSTS</p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 103%; font-size: 15px;"><a href="https://investinglive.com/EconomicCalendar" rel="follow" style="color: rgba(70, 120, 134, 1); text-decoration: underline;">Today</a> we conclude the week with the US Flash PMIs.</p> This article was written by Giuseppe Dellamotta at investinglive.com.