Bitcoin Reversal Deepens
Following a breakout to new all-time highs earlier in the week, Bitcoin prices have since reversed sharply. The futures market has shed almost 8% from those highs with bulls showing some signs of frustration at a lack of crypto noise from president Trump. The president was consistently vocal about his support for the crypto industry over the course of his campaign and just recently, ahead of his inauguration. However, with Trump yet to make any move regarding crypto, or even outlines any potential plans, bull sentiment is fading here. Late speculative longs are likely the key casualties of the current correction, which has room to run deeper near-term while traders await a clear bullish catalyst from Trump.
Trump is Key to Watch
Looking ahead, the path for Bitcoin looks fairly straightforward. While there is no concrete news for the crypto industry, the market looks likely to continue lower though dips should find strong demand from longer-term players. As such, we can expect some ranging action below the current highs until Trump addresses digital assets. The longer we go until we hear Trump talk on crypto, the greater the risk of a deeper drift lower. However, should Trump make any bullish crypto announcements near-term, the market looks primed for a breakout and firm rally higher. As such, the view on Bitcoin remains bullish though traders are currently in a wait-and-see phase.
Technical Views
BTC
The rally in BTC has stalled for now on a failed break of the 107,855 level. Price is now fast approaching a retest of the 100,195 support and the broken bear channel. Bulls need to defend this area to keep focus on a return to highs and avoid a deeper drop towards the 91,750 level.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.