Bitcoin inched lower on Tuesday, decreasing the price of digital currency to less than $8600 after some key economic releases. The technical bias remains bearish because of a lower low in the recent downside move.
Bitcoin Technical Analysis
As of this writing, the digital currency is being traded near $8562. A hurdle can be noted near $10000, a key psychological level ahead of $11194, 50% fib level on the daily chart and then $19468, the high of the last major upside move. A break and daily closing above the $19468 level shall trigger renewed buying interest, validating a rally towards the $21000 resistance zone.
On the downside, a support may be noted around $8159, an immediate horizontal support ahead of $7000, the psychological level as well as another key horizontal support area and then $5559, the low of the last major downside move. The technical bias shall remain bearish as long as the $20000 resistance area is intact.
US Payrolls Report
The ADP national employment report showed private sector employment rose by 234,000 jobs in January, beating economists’ expectations for an increase of only 185,000. December’s payrolls count was revised down to 242,000 from 250,000.
Manufacturing added 12,000 jobs last month and construction payrolls increased 9,000 despite bitterly cold temperatures in many parts of the country. There were also widespread job gains in the private services sector.
The ADP report is jointly produced with Moody’s Analytics. It, however, has a poor record predicting the private payrolls component of the government’ more comprehensive employment report. The Department of Labor will publish January’s employment report on Friday.
Considering the overall technical and fundamental outlook, buying the digital currency around current levels appears to be a good strategy in short to medium term.