For majority of last 10 days, Bitcoin has been around $20,000 or close to it
Bitcoin is flashing a concerning signal on its 4-hour chart, according to crypto analyst Ali Martinez, who highlighted that the TD Sequential was presenting a sell signal. A potential decline might see Bitcoin retrace to $20,800.
— Ali (@ali_charts) November 5, 2022
Following the unexpectedly strong jobs report, which revealed that U.S. payrolls added 261,000 jobs in October, exceeding economist expectations of 200,000, Bitcoin and the rest of the cryptocurrency market increased. Contrary to forecasts, the jobless rate increased to 3.7% from 3.6%.
Investors liked the tone of the most recent jobs report and other economic indications this week, which caused Bitcoin to reach a seven-week high of $21,478 on Nov. 5.
Although Bitcoin is trading slightly lower from this high, the largest cryptocurrency by market value is recently above $21,000, which is above the upper end of the confined range it has been trading in for weeks. For the majority of the last 10 days, Bitcoin has been around $20,000 or close to it.
At the time of publication, BTC was marginally down in the last 24 hours at $21,211.
Retest of levels might seem next
Bitcoin bounced after hitting a base of $20,032 on Nov. 3. Two additional days of positive price action brought Bitcoin to highs of $21,478 before bulls ran into a barricade. If the price declines further from current levels, a retest of the $20,800 level as indicated above might surface.
The good news is that Bitcoin is forming numerous supports slightly below here. The $20,000 psychological level might act as key support for Bitcoin, having held above this key level since Oct. 26. The $19,661 level, which coincides with the daily MA 50, might also act as interim support.
On the upside, $21,500 is an important level to keep an eye on because a break above it could signal the start of a strong recovery to $22,800 and then $25,211.