BTC Turning Higher

Bitcoin prices are seen pushing higher across early European trading on Monday as the market extends gains on the back of Friday’s bullish reversal. The much-anticipated Bitcoin halving event so far looks to be keeping prices supported for now. The move comes despite some speculation that, on the back of the run up seen prior to the event, we might witness a “buy the rumour, sell the news” dynamic play out. Still, for now, the market remains around the lower mid-point of the range which has framed price action over the last two months.

ETF Demand

With the halving event out of the way, Bitcoin bulls will now be hoping to see a fresh surge in Bitcoin ETF demand which should help drive prices higher again. Surging demand earlier in the year helped spur the rally in Bitcoin. However, with the halving event looming, this demand appeared to slow down as investors waited to see how the event played out. With the market having avoided a crash, ETF demand should start to pick up again now as more institutional investors look to access the market.

USD & The Fed

USD movements and the Fed outlook also remain key to BTC forecasts. The shift in near-term Fed expectations has been another headwind for BTC recently. Looking ahead, inflation data will remain a key market mover with BTC bulls hoping to see inflation start to fall once more, and a lift in near-term Fed easing expectations to help drive a fresh risk rally.

Technical Views

BTC

The latest test of support at 60695 has seen the market bouncing once again. Price is now back above 64540 and close to testing the triangle highs, ahead of resistance at the 69355 level. Bulls need to see a move above this area to put focus back on a fresh test of YTD highs.