Bitcoin Bulls Look to Hold Key Support Ahead of NFPs: How to Trade the Report

investing.com:

Bitcoin recently tested a significant resistance level in its long-term outlook, spurred by this week's ascent following the Federal Reserve's decision to once again keep interest rates unchanged and deliver a reassuring message about its monetary policy.

With increased risk appetite following the Fed's decision, Bitcoin experienced a surge during Asia trading hours, briefly reaching $35,900. On the weekly chart, this price aligns with the 0.382 Fibonacci level calculated from the peak and bottom, representing a crucial hurdle to clear for a sustained uptrend. However, Bitcoin retraced its gains from the Fed-related rally and dipped from $35,900.

As the week neared its end and attention shifted to the nonfarm payrolls data, Bitcoin relinquished some of its short-term gains and appeared to be approaching the lower boundary of the horizontal trading range that it has maintained since the last week of October.

This horizontal range's boundaries also align with Fibonacci expansion levels corresponding to the retracement from July to September, as evident in the daily chart. The cryptocurrency remains within this zone, oscillating between Fib 1.414 and Fib 1.618, with the $34,000 to $34,300 range acting as a pivotal support level.

Should daily closes fall below $34,000, it could intensify selling pressure and potentially lead Bitcoin to retreat to the midline of the 2023 rising channel, with an interim support of around $33,100. In such a scenario, the cryptocurrency could test the $32,000 level.

The trigger for a possible pullback could be higher-than-expected employment data. In this case, it would accelerate speculation that the Fed may decide to raise interest rates in December to increase the cost of financing, depending