$80k Support Holding
The move higher in Bitcoin midweek has failed to see any follow through so far, with the rally currently stalled into the bear trend line from YTD highs. However, the subsequent correction lower has found support, keeping price above the $80k pivot. While this level holds, focus is on an eventual upside break and a test of the $91,750 level next. The surprise U-Turn from Trump on tariffs helped drive a strong recovery move on Wednesday. However, with optimism since fading, linked to the escalating US/China trade war, bullish momentum has faltered.
Bullish Drivers
However, while price holds above the $80k level the near term outlook remains bullish. Furthermore, if we see any positive developments in the US/China trade backdrop, this will be firmly bullish for BTC. Looking ahead, bulls will be monitoring incoming news flow for any sign that the two countries are willing to negotiate. If seen, BTC is likely to see another wave of demand as risk sentiment strengthens. Furthermore, the downside surprise in US inflation this week has cemented near-term Fed easing expectations which should add further support for Bitcoin in coming months. With the Fed widely expected to cut by at least .25% in June, risk assets should find a floor against recent lows, creating room for a recovery move particularly if inflation stays anchored lower near-term.
Technical Views
BTC
For now, BTC is holding above the $80k mark, back above the 50% Fib level. While this area holds as support, focus is on a fresh push higher and a test of the $91,750 level next. This will be a major pivot for the market with a move back above that level turning focus back to the YTD highs 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.