Bitcoin (BTC) chart analysis: A bullish correction approaching?

Bitcoin (BTC) was in a slight uptrend, seen as a compression, earlier today. The move comes as markets prepare for the next US inflation report. Most cryptos also took the same direction before the FED release. This compression movement generally precedes high volatility in the markets, which is the case for Bitcoin.

Slight increase before publication

After two consecutive days in the red, Bitcoin resumed rising earlier today. However, this rise appears to be an upward squeezing movement. This is a common situation in the markets before the release of major economic news. Indeed, today’s earlier bullish move comes ahead of the US inflation report.

Towards the end of the Asian session, the crypto king hit a high of $19,200. Up 1.85% from yesterday’s low at $18,855.

Today’s rise has also brought the price closer to the nearest resistance level. This is yesterday’s session high at $19,262. During the process, the price of Bitcoin (BTC) thus moves away from the low of the week, achieved on Tuesday.

On a broader view, we can see that it is the sellers who remain in control. Indeed, the price continues to move towards the lower part of the range between $25,000 and $18,800. Currently, Bitcoin (BTC) is trading around $19,000.

This all comes as the 14-day RSI approaches a collision with the resistance at 44.55. Currently, this indicator is hovering around 43. As it stands, it seems to be difficult for the bulls to bring the price back above $22,800. To achieve this, the first step would be to break the resistance on the RSI at 48.24.

bitcoin price
BTC / USD – source: TradingView

Bitcoin (BTC): high price volatility in favor of the bears

After the publication of the FED’s inflation report in the USA, the price of Bitcoin is experiencing high volatility. Indeed, we can see a variation of 1% in less than an hour.

This volatile movement benefited the bears in the first place. Then the bulls responded immediately, approaching the top of the squeeze.

In such a situation, it is better not to open a position. Markets are unpredictable and volatility could hit your stop loss in less than a second.

For now, the bears are still taking over the bulls. Which causes the price of Bitcoin to seek new lows. However, we can envisage a rebound in the price of BTC on the range support at $18,800.

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