BTC Spikes Higher
Following a slump over recent weeks, Bitcoin has regained upward momentum this week, breaking out to fresh 2023 highs. The move comes despite an uptick in US regulatory action against the crypto sector including exchanges and staking companies. Yesterday’s almost 10% rally marked the largest single-day increase for Bitcoin in over six months with many traders now look for a fuller breakout beyond the 24930 level.
Ordinal Numbers Soaring
Interestingly, the rally in BTC comes despite an increase in hawkish Fed expectations linked to a spate of better-than-forecast US data. With inflation seen bouncing back sharply last month there had been fears of a fresh leg lower for BTC but the market appears to have gone the other way. One key driver behind the fresh buying in BTC is the surge in Ordinal inscriptions on the BTC network which passed 100k on Tuesday. Some key names in the crypto space have been moving to Ordinals, such as the Solana NFT Collection, which is bolstering confidence and driving demand higher.
Upside Risks for BTC
Looking ahead, the near-term outlook looks bullish for BTC. Industry data reveals a sharp uptick in institutional inflows over recent days (reportedly circa $1.6 billion). Some of the accounts seen buying are known whales, suggesting BTC might be at the start of a fresh bull move as more capital returns to the market following the heavy outflows we saw last year.
Technical Views
BTC
The rally in BTC over recent months has seen the market breaking above several key resistance levels. Price is now testing the 24930 level and with momentum studies turning bullish, the focus is on a continuation higher towards 28110 while 22600 holds as support.
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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.