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Powell Comments Supporting Crypto
Comments from Fed chairman Powell on Friday have fuelled fresh hope for Bitcoin traders. Powell was seen voicing his support for a slower pace of tightening, explaining that tighter credit conditions meant the Fed didn’t need to hike as high as initially thought. BTC and other crypto assets have been on the backfoot recently amidst a fresh uptick in hawkish Fed expectations. A slew of hawkish Fed commentary as well as some data strength had seen the market increasing its probabilities of a fresh hike from the Fed in June. Pricing had jumped to around 40% ahead of Powell’s comments. Subsequently, pricing for a June hike has dropped back under 20%.
Bullish View
Against this backdrop, BTC looks to have room to make a fresh move higher. The turndown from the April highs has been laboured and choppy, reflecting its corrective nature. Recently, the downside move has stalled with BTC now looking to break back above resistance. If the market gets a greater sense of a forthcoming pause from the Fed in June, this should help drive risk sentiment higher, lifting BTC and other crypto assets.
Technical Views
BTC
The breakdown below the contracting triangle has stalled for now, with price subsequently retesting the underside of the structure as bulls look to get back above the 27415 level. Back above here the focus is on a bigger move back towards the 32185 level and fresh highs for the year. To the downside, 24930 is the next support to note.
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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.