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Bitcoin Rally Pauses
Bitcoin prices saw very little movement over the European morning on Monday. The futures market remains stagnated for now ahead of resistance at the 53385 level. On the back of the bull move we saw over early February, the recent loss of upside momentum shouldn’t phase bulls too much with the outlook remaining in favour of a further push north while we hold above the 45520 level.
Fed On Watch
Focus this week will be on the US Dollar given the busy US data schedule ahead. Thursday’s core PCE deflator will be the key release to watch. With the Fed stressing it is in no rush to ease rates, traders will be watching to see how inflationary pressures developed last month. If we see any upside surprise this will further strengthen the view that the Fed is likely to keep rates unchanged in coming months. Ensuing USD strength is likely to keep BTC upside muted for now while the market awaits a fresh bullish catalyst.
Bullish Outlook
Looking ahead, the outlook for Bitcoin remains bullish for now. The upcoming halving event in April is expected to see a fresh upside drive and with the Fed signalling that rate cuts will be coming later this year, USD weakness is projected to appear before long, adding further support for Bitcoin.
Technical Views
BTC
The rally has stalled for now into a test of the 53385 level. Fading momentum studies readings suggest there is room for a correction to develop near-term. However, while the 45520 level support and bull channel remain intact, the focus is on a continuation higher towards the 56070 level next.
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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.