Bitcoin whipsaws after the NFP report as the focus remains on the Middle East developments

<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="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">Bitcoin couldn’t extend the gains on Friday despite a soft <a href="https://investinglive.com/news/us-september-non-farm-payrolls-29k-vs-90k-expected/" rel="follow" style="color: rgba(70, 120, 134, 1); text-decoration: underline;">NFP report</a>and the cryptocurrency eventually ended the day negative. </p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">There wasn’t any bearish catalyst for the downside move, it’s just that the NFP report didn’t matter much in the bigger picture since the totality of the US data continues to be strong and the US-Iran negotiations remain at a stalemate. </p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">Over the weekend, Bitcoin recovered Friday’s losses and it’s now trading at pre-NFP levels. Given a very light calendar this week, the focus will likely remain on US-Iran developments.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">If we get a breakthrough, we can expect oil prices to drop significantly and give Bitcoin a boost on lower rate hike expectations and positive risk sentiment. Another escalation, on the other hand, will likely send crude oil higher and weigh on the crypto market.</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 trading near the monthly highs. If the price pulls back into the trendline, we can expect the buyers to lean on it, with a defined risk below it, to position for a rally into the 98,000 level. The sellers, on the other hand, will want to see the price breaking below the trendline and the 82,500 support to pile in for a correction into the 76,000 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 recent rangebound price action. The price broke above the minor 85,000 resistance on Friday but eventually move back below it before recovering the losses. This noise suggests for more caution, so the buyers might want to wait for the price to break above the monthly high or a pullback into the upward trendline to start positioning for a move into the 98,000 level. The sellers, on the other hand, will need a break below the trendline and the 82,500 support to open the door for new lows.</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 upward trendline defining the current bulling momentum. The buyers will likely continue to lean on it, with a defined risk below it, to keep pushing into new highs. The sellers, on the other hand, will look for a break lower to start positioning for a pullback into the major upward trendline. 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 get the US ISM Services PMI. On Wednesday, we have the FOMC meeting minutes. On Thursday, we get the latest US Jobless Claims figures. On Friday, we conclude the week with the University of Michigan Consumer Sentiment survey.</p> This article was written by Giuseppe Dellamotta at investinglive.com.