A recovery in risk appetite has pushed volatile assets like bitcoin higher against the U.S. dollar!

BTC/USD just bounced from a technical support zone and appears able to test a key inflection point.

Will the crypto pair extend its gains today?

Bitcoin (BTC/USD) Day by day Chart by TradingView

In case you missed yesterday’s market motion, you must know that a better-than-expected labor market-related report within the U.S. encouraged risk-taking within the markets.

Appetite for the refuge U.S. dollar waned while “risk” assets like bitcoin shot up.

Do not forget that directional biases and volatility conditions in market price are typically driven by fundamentals. In case you haven’t yet done your homework on bitcoin and the U.S. dollar, then it’s time to envision out the economic calendar and stay updated on each day fundamental news!

BTC/USD, which was hanging around $55,000, rocketed to the $61,000 levels before sellers stepped in.

Will the bulls sustain their momentum in the following few days?

A bullish scenario could see BTC/USD breaking above the present resistance cluster. This may occasionally pave the best way for a move toward the $70,000 psychological level, R1 Pivot Point at $71,902, with the channel’s upper boundary and R2 Pivot Point at $79,192 serving as subsequent targets.

On the flip side, if sellers regain control, we could see a pullback towards S1 at $55,436 near the August lows and descending channel support. Consistent trading below this level may signal a deeper correction, potentially retesting the recent lows near the S2 at $46,260.

Whichever bias you find yourself trading, keep in mind that proper risk management is crucial when trading volatile assets like cryptocurrencies. Stay informed about regulatory developments and broader market sentiment, as these aspects can significantly impact cryptocurrency prices.