BTC Pushing Higher
Bitcoin prices are continuing to push higher as we move through the middle of the week with the futures market now up more than 8% off the week’s lows. The shift in sentiment is being predominantly driven by news of the Israel-Iran ceasefire. As shaky as the ceasefire may be, the news has caught markets off-guard with traders at the start of the week bracing for an escalation in the conflict. While the ceasefire holds, risk sentiment looks likely to further improve, allowing bitcoin prices to continue higher for now. However, should the ceasefire breakdown, crypto prices (and the broader risk complex) are vulnerable to a sharp reactionary move lower, meaning that volatility risks remain elevated near-term.
ETF Demand Soaring
The drop lower in Bitcoin at the start of the week proved to be an attractive proposition for institutional investors. BTC ETF data shows that inflows have continued to soar with funds now on their 10th consecutive day of net-inflows. Ove this period, BTF ETFs have absorbed more than $350 million in institutional money. With price sitting just below the all-time highs and demand continuing to rise, a breakout remains the preferred view. Looking ahead, traders will be watching the second half of Powell’s testimony in Congress today. If there are any more dovish leaning comments this could well spur a breakout move in BTC ahs USD weakens.
Technical Views
BTC
The firm bounce off the bull channel lows and $100k support area means that focus is still firmly on further upside. Price is now fast approaching a fresh test of the $108,855 level which, if broken, will put the channel highs and $120k mark in sight as the next upside target.
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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.