Bitcoin Rallies off Lows
Bitcoin traders continue to experience wild volatility this week. Following the closing of the gap higher which we saw at the start of the week prices have since reversed higher again with the futures market rallying around 9% off yesterday’s lows. The reversal lower is said to have found strong demand from big names and longer-term players who are still positioning for an eventual move higher this year. Indeed, on the back of Trump’s crypto reserve comments over the weekend, the prospect of another bull run is looking more likely, though near-term we can expect current volatility to persist.
Crypto Summit
Looking ahead, traders will be closely watching the upcoming crypto summit being held at The White House on Friday. Following Trump’s naming of 5 cryptocurrencies to be included in a US crypto reserve, traders will now be looking for further details. Given the amount of speculation around the issue, the event needs to deliver some concrete steps towards establishing such as reserve, or risk disappointment and a subsequent sell-off in Bitcoin and the wider crypto market.
However, if we do get any solid news from the event, Bitcoin prices look poised to rally sharply higher given the initial reaction we saw at the start of the week. There is clearly still a lot of demand for BTC based on the prospect of a crypto reserve coming this year and plenty of institutional capital ready to re-join the market following the order-book clear-out over the recent correction lower.
Technical Views
BTC
The move lower in Bitcoin has stalled for now into the 50% Fib retracement of the rally off August 2024 lows. The key hurdle for bulls now is the retest of the broken bull channel and the $91,750 level which buyers need to overcome to alleviate bearish risks near-term. Back above there, $100k is the key level. To the downside, $74,655 remains the key support to watch.
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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.