Hey guys.
This is a weekly update on bitcoin.
In last week's weekly review, we discussed the weak August and weekly closes and the bearish control of the market. We also considered long positions above the 60K and 61.5K levels, but no suitable entry points emerged. At the beginning of the week there was some buying, but starting from Tuesday, the growth was absorbed and the price went into a downtrend, which we additionally warned about.
The main reason for the price decline was the negative impact of macro statistics on the labor market: Non-Farm Payrolls came out worse than market expectations, amounting to 142K with a forecast of 164K, while the previous data was revised downward to 89K. This caused a negative market reaction, leading to a correction in stock indices and almost all assets.
On the liquidations chart, it is interesting to observe that liquidations below 50K are around $1 billion, whereas when the price rises into the 63K zone, it is around $8 billion. This suggests that the big players can easily drive the price upwards where more liquidity is located.
TA
From the point of view of technical analysis, an important level is 56K. If it is broken, we can expect a bullish takeover and consider a long position with a stop below the local minimum. Until this happens, the price may trade in the range of 52-56K, and an update of the low at 50K is not excluded. If this happens, I will keep a close eye on a false breakdown and also consider a long position.
This week the market's attention will be focused on inflation data, which should show a decline to 2.6%, which may cheer up the markets a bit. It is also worth keeping in mind the Federal Reserve meeting on September 18. In general, the market remains in the volatility zone, which should be taken into account.
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Stay tuned.
