Aragon

<p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">Bitcoin sold off sharply towards the end of last week following the news of the Binance security breach, which reportedly resulted in approximately $6.3 billion being drained from multiple wallets. The hack, described as the largest cryptocurrency heist in history, raised concerns about exchange security and potential contagion across the broader crypto ecosystem.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">Although Binance pledged to cover customer losses, the uncertainty surrounding the stolen assets and the potential for further liquidations weighed heavily on sentiment. Around $1.53 billion in leveraged positions were liquidated over 24 hours, amplifying the initial selloff as forced liquidations accelerated the downside.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">However, Bitcoin eventually rebounded as concerns surrounding the hack gradually eased. Binance's commitment to cover customer losses helped contain fears of broader contagion, while improving sentiment around US-Iran negotiations provided additional support to the crypto market. Iran's proposal to reopen the Strait of Hormuz within two days strengthened hopes for a diplomatic breakthrough, reducing some of the geopolitical risk premium weighing on markets, with oil prices erasing most of last week’s gains.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">Nevertheless, the macro backdrop remains challenging, with inflation risks, growth concerns, Fed rate hikes and geopolitical uncertainty continuing to limit the upside. We will likely need a breakthrough in US-Iran negotiations or dovish Fed comments to change the current bearish trend. A surprising red sweep in US midterm elections could also support the cryptocurrency as markets could reprice the expected fiscal restraint. A blue sweep, on the other hand, could put further pressure on the crypto market if there’s no resolution to the Iran war. </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 slowly rebounding after the selloff triggered by the Binance security breach. We have a downward trendline now defining the bearish structure. If the price gets there, we can expect the sellers to lean on the trendline, with a defined risk above it, to position for a drop into the 75,000 level. The buyers, on the other hand, will want to see the price breaking higher to pile in for a rally into the 98,000 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, there’s not much we can glean from this timeframe as the sellers will have a better risk to reward setup around the downward trendline, while the buyers will need to wait for either a break above the trendline or a drop into the 75,000 level.</p><p>BITCOIN TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME</p><p></p><p>On the 1 hour chart, we have a minor upward trendline defining the current pullback. The buyers will likely lean on the trendline, 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 pile in for a drop into the 75,000 level next. 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 have the US ISM Manufacturing PMI. Tomorrow, we have the US Job Openings data and the US midterm elections. On Wednesday, we have the US ADP and the US ISM Services PMI. On Thursday, we get the latest US Jobless Claims data. On Friday, we conclude the week with the US NFP report and the University of Michigan Consumer sentiment survey.</p> This article was written by Giuseppe Dellamotta at investinglive.com.