Bitcoin rebounds from a key support as risk sentiment improves on falling oil prices, but will it last?

<p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">Bitcoin rebounded from a key support as the risk sentiment improved a bit after the fall in oil prices. The catalyst was Trump’s waiver of several Russia sanctions as an attempt to ease fuel shortages and contain prices without making concessions to Iran. </p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">Ukraine's attacks on energy infrastructure, though, will likely keep the risk premium high, so without a de-escalation in the Middle East, oil prices are unlikely to come off the highs that much. </p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">This means that the recent improve in risk sentiment might not hold for long without further positive developments. Keep in mind that the market’s focus might have shifted to growth concerns, so this week’s US Flash PMIs should be the most important data to watch. </p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">Higher than expected data could quell growth fears and support Bitcoin in the short-term. A soft report, on the other hand, might increase the concerns and put pressure on the cryptocurrency.</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>couldn’t break below the support zone around the 80,000 level as the price rebounded once again. 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 have a minor resistance around the 84,000 level. If the price gets there, 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 sellers will have a better risk to reward setup around the resistance, while the buyers will need a break to open the door for new highs. 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;">On Thursday</a> we get the latest US Jobless Claims figures, while on Friday we conclude the week with the Flash US PMIs.</p> This article was written by Giuseppe Dellamotta at investinglive.com.