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USD Rally Quietens Crypto
It’s been a quiet month for Bitcoin. Following the move in mid-July up to fresh highs for the year. The market has since corrected lower and has settled into a range between 27415 and 32185, currently trading around midway between the two levels. The uptick in USD over that same period has no doubt been a major headwind for crypto. BTC had been breaking higher over recent months on expectations of a forthcoming end to the Fed’s tightening program. However, with the outlook growing more mixed again recently, USD has found fresh demand, stalling the upside in crypto for now.
News Impact
Negative news flow around the crypto space has also been a bearish driver for Bitcoin. With the SEC suing Coinbase and several exchanges going bust this year, the market has been volatile and sensitive to industry headlines. Looking ahead, with major players now anticipating a policy shift from the Fed across Q1 next year, BTC should find support for a fresh move higher. The market is still forecasting a further hike from the Fed this year which might keep prices pressured near-term. However, if this narrative shifts, this could see BTC getting the green light for a fresh rally ahead of year end.
Technical Views
BTC
The latest test of the 32185 level has seen the market correction lower once again. However, in light of the bull move over the year so far, the current downside is viewed as a correction. While 27415 holds as support, the focus is on a further push higher and a breakout above current YTD highs.
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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.