HomeContributorsTechnical AnalysisBitcoin Price Weakens Amid War Escalation, US CPI Jumps 0.4%

Bitcoin Price Weakens Amid War Escalation, US CPI Jumps 0.4%

Key Highlights

  • Bitcoin price started a fresh decline amid the escalation of the Israel-Hamas war.
  • BTC broke a major contracting triangle with support at $27,000 on the 4-hour chart.
  • Gold prices tested the $1,880 resistance and oil prices found support at $83.00.
  • The US CPI rose 0.4% in Sep 2023 (MoM) whereas the market forecast was 0.3%.

Bitcoin Price Technical Analysis

Bitcoin price started a fresh decline after it failed to stay above $28,000. BTC accelerated lower amid the Israel-Hamas war escalation, as Israeli airstrikes in the Gaza Strip displaced thousands from their houses. The market is a bit volatile with swing moves in gold, oil, VIX, and safe havens. Therefore, Bitcoin could face selling pressure and it might even accelerate lower toward $26,000 if the situation worsens.

Looking at the 4-hour chart, the price there was a sharp bearish move below the $27,500 level. The price traded below a major contracting triangle with support at $27,000.

BTC/USD even spiked below the 76.4% Fib retracement level of the upward move from the $25,977 swing low to the $28,606 high. It seems like the bears could aim a move toward the $26,000 support zone in the coming sessions.

The next major support is near $25,500, below which the price could slide toward $24,200. If there is a recovery wave, the price might face resistance near $27,000.

The first major resistance is near $27,250 and the 100 simple moving average (red, 4 hours). A successful close above the $27,250 level might spark a decent increase. In the stated case, the price may perhaps rise toward the $27,800 level. The next stop for Bitcoin bulls may perhaps be near the $28,600 level.

Looking at gold prices, it did test the $1,880 resistance (as discussed in the previous analysis). More importantly, oil prices saw a downside correction to close the open-week gap at $83.00.

Economic Releases

  • Michigan Consumer Sentiment Index for Oct 2023 (Prelim) – Forecast 67.4, versus 68.1 previous.
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