Bitcoin recovers losses as oil prices ease: focus turns to US CPI as next key catalyst

<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 had a negative day yesterday as the broader crypto market came under pressure after crude oil surged to new weekly highs. </p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">In the Asian session, though, oil prices pulled back and we saw a quick reversal in many risk assets, including bitcoin. </p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">The geopolitical situation remains basically unchanged as the Houthis continue to attack Saudi Arabia, while the US-Iran negotiations are in a deadlock. Unless the Fed turns more dovish, the geopolitical risks will likely continue to cap the upside.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">Looking ahead, tomorrow we get the US CPI report, which is going to be a key near-term catalyst. Higher than expected core inflation could trigger a selloff in bitcoin on a hawkish repricing and increased rate hike probabilities for October. A soft report, on the other hand, might give the cryptocurrency a short-term boost.</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>is rebounding from the support zone around the 81,500 level. 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 more clearly the rangebound price action of the last few weeks. From a risk management perspective, the buyers will continue to have a better risk to reward setup around the 81,500 support to keep targeting new highs, while the sellers will be better off shorting from the 87,400 resistance or wait for a break below the support.  </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, we have a minor support around the 83,000 level. If we get a pullback, we can expect the buyers to step in there, with a defined risk below the support, to position for a rally into the 87,400 resistance. The sellers, on the other hand, will look for a break to extend the pullback into the 81,500 support targeting a break below it. 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;">Tomorrow</a> we have the US CPI report. On Thursday, we get the US PPI, the US Retail Sales and the latest US Jobless Claims figures.</p> This article was written by Giuseppe Dellamotta at investinglive.com.