Bitcoin extends losses as higher oil prices and Fed rate hike bets weigh on the crypto market

<p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">FUNDAMENTAL OVERVIEW</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="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">Bitcoin has been dragged lower by negative macro developments this week. The significant drop in oil prices on growing expectations of a de-escalation and an earlier end to the conflict supported the crypto market. At the UN General Assembly, though, Trump poured some cold water on those expectations as he repeated that the US would make a deal with Iran after the November elections. </p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">The general risk sentiment started to deteriorate as oil prices began rising again and dragged cryptocurrencies lower. Eventually the bearish momentum increased yesterday after the <a href="https://investinglive.com/news/investinglive-americas-market-news-wrap-strong-us-services-pmi-leads-to-a-big-breakdown-in-bonds/" rel="follow" style="color: rgba(70, 120, 134, 1); text-decoration: underline;">US Flash PMIs</a> showed a much stronger growth than expected and triggered another hawkish repricing that sent Treasury yields to new highs.  </p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: normal; font-size: 15px;">The focus will remain on interest rates expectations and Middle East developments. If the markets start to sense an earlier end or we get a surprising breakthrough, then we can expect oil prices to decline and support Bitcoin. Conversely, if things remain unchanged or even re-escalate, we can expect crude oil to remain supported into new highs and weigh on the crypto market.</p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: normal; 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>has pulled back to the broken resistance-turned-support zone around the 82,500 level. This is where we can expect the buyers to step in with a defined risk below the support to position for a rally into the 90,000 level. The sellers, on the other hand, will want to see the price falling below the support to pile in for a drop into the major upward trendline around the 79,000 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 now have a minor resistance zone around the 85,000 level. If we get a bounce from the support zone, 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 90,000 level next.</p><p>BITCOIN TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME</p><p></p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">On the 1 hour chart, we have a minor downward trendline defining the bearish momentum on this timeframe. We can expect the sellers to eventually split their positions and lean on both the trendline and the 85,000 resistance to position for a break below the support. The buyers, on the other hand, will look for upside breaks to start piling in for new highs. </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 have the Trump-Xi meeting and the US Jobless Claims data, but the focus will remain on the US-Iran developments and interest rate expectations.</p> This article was written by Giuseppe Dellamotta at investinglive.com.