-1701165958.png)
BTC Dips from Highs
Bitcoin futures have undergone an almost 6% rotation lower over the last two daily sessions as choppy price action continues. BTC has been stuck in a laboured grind higher over recent weeks following a breakout move higher over October. While fresh YTD highs were posted late last week, the coin lacks the same bullish momentum we saw in October and price action looks vulnerable to a correction lower near-term unless we see a fresh bullish catalyst.
Lull in Sentiment
Optimism over potential SEC approval of Bitcoin ETFs had driven the market higher over October. The opening of the first 8-day approval window in early November saw plenty of excitement. However, with the SEC ultimately choosing to delay any decisions until January, sentiment has weakened a little with traders turning elsewhere for momentum moves.
Bullish Outlook for BTC
Looking ahead, the broader backdrop remains bullish for BTC. With USD weaker and the Fed expected to remain on hold before cutting early next year, the SEC widely expected to approve some if not all spot BTC ETF applications and the upcoming April halving event in view too, BTC looks poised for further upside through coming months though near-term there are risks of a positioning clear out before we make the net move higher.
Technical Views
BTC
Price has been hugging the upper bull channel trend line over recent weeks and following a spike above last week, selling saw the market reversing sharply. BTC is now testing 37030 as support. While this level holds, focus remains on a push higher towards 39860 next. However, should we slip below, 34755 comes into view as the next support to watch.
.png)
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
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.