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 looks ready to test a key inflection point.

Will the crypto pair extend its gains today?

Bitcoin (BTC/USD) Daily Chart by TradingView

If you missed yesterday’s market action, you should know that a better-than-expected labor market-related report in the U.S. encouraged risk-taking in the markets.

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

Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on bitcoin and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily 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 next few days?

A bullish scenario could see BTC/USD breaking above the current resistance cluster. This may pave the 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 end up trading, remember that proper risk management is crucial when trading volatile assets like cryptocurrencies. Stay informed about regulatory developments and broader market sentiment, as these factors can significantly impact cryptocurrency prices.