Bitcoin gave back its entire weekly advance as Middle East tensions and growth worries soured risk appetite. Markets now await US Flash PMIs.
In the last few sessions, bitcoin has surrendered its entire weekly advance as broad risk aversion pressed down on the cryptocurrency market. The shift toward defensive positioning began late on Wednesday after reports indicated that the US military was trimming its troop presence at bases in the Middle East, while the State Department had ordered cuts to staffing at diplomatic posts amid elevated security risks and the potential for renewed military action against Iran.
The selling pressure intensified further after The New York Times said that US and Israeli militaries had drawn up detailed plans for possible strikes on Iran in the aftermath of the US midterm elections. The story also stated that the US was strengthening its military presence, with the build-up slated to be fully in place by early November.
For the crypto market, the prospect of another direct US-Iran confrontation, combined with escalating growth concerns and a hawkish Fed, amounts to a potent set of bearish forces.
Today's focus will be on the US Flash PMIs, which could serve as another major trigger given the anxieties about growth. A softer-than-expected reading may amplify those growth fears, put additional pressure on risk sentiment and push bitcoin into another decline. A stronger number, meanwhile, could ease worry in the short term and prompt a relief bounce, even if it does not alter the broader picture.
Bitcoin, daily chart technical outlook
On the daily chart, Bitcoin is seen pulling back to the key 80,000 support area. Buyers are expected to keep stepping in around that level, with risk defined beneath it, as they continue to aim for a push toward 98,000. Sellers, in contrast, will be looking for a move below support to add positions and target the 75,000 zone next.
Bitcoin, 4-hour chart technical outlook
On the 4-hour chart, the price had climbed above the 84,000 resistance before giving back all of those gains. Should it return to that level, sellers are likely to defend the area, with risk defined above it, while they keep aiming for a break below support. Buyers, on the other hand, will want a close higher to add to bullish positions and target 87,400 next.
Bitcoin, 1-hour chart technical outlook
On the 1-hour chart, there is little else to add: buyers have a better risk-reward setup around support, while sellers need a downside break to clear the way for fresh lows. The red lines mark today's average daily range.
Catalysts still ahead
Today brings the week to a close with the US Flash PMIs.
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Disclaimer: this article comes from third-party media and is provided for reference only. It does not constitute investment advice. Crypto and other financial products carry significant price volatility risk, so please make your own decisions carefully.
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