The Bitcoin price couldn’t come close to the 12000 level and is seeing a pullback today, alongside the price of gold. Bitcoin is off -1.37% and the precious metal is lower by -0.37%. This is a small correction but traders must be wary of a deeper pullback.
The move lower in Bitcoin and gold is being driven by a bounce in the price U.S. dollar, which was up yesterday and has seen 0.25% bounce today too. The U.S. dollar’s recent weakness has supported the price of anti-dollar pairs such as bitcoin and the greenback was boosted by yesterday’s ISM Manufacturing data, which smashed expectations with a print of 56. The 50 level is the line in the sand for contraction in manufacturing and after beating the analyst expectations for 54.5, the manufacturing industry in the U.S. is moving further into expansion, supporting the hopes for a big economic recovery.
The economic calendar today has only medium-level data sets, but one that will be watched is the ADP Employment figures, which will give an indication of the jobs market ahead of Friday’s Non-Farm Payrolls release. Initial jobless claims are released tomorrow and this will also drive the dollar.
For Bitcoin, the catalysts going forward will always be economic and driven by the dollar or monetary policy and the outlook for central bank cryptocurrencies. Ethereum is currently outperforming Bitcoin because it has a use case as the native blockchain for the boom in decentralized finance (DeFi) startups that have exploded onto the scene this year.
Bitcoin Technical Outlook
The $12,000 level is a key obstacle for BTC with the $12,500 highs from August 18th also blocking the path to $14,000. The failure of bitcoin at the 12000 level is now risking a close below the price channel resistance and a close near $11,650 would be bearish going forward. The trend is still up and there is potential for support down to $11,000, but owners should be cautious and careful of any swift move lower.
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