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Bitcoin Recovering
Following steady selling over recent months, Bitcoin bulls were given some sign of hop late last week as BTC futures jumped more than 7%. The rally comes amidst a weakening of the US Dollar as traders scale back their Fed rate projections on the back of the FOMC. The Fed paused its tightening campaign last week and despite signalling that further tightening might still be necessary, traders have taken the view that with inflation falling, the current pause is likely to extend.
Risk Rally Supporting
Against this backdrop, risk assets, including Bitcoin, have been able to recover. Additionally, BTC is also rallying due to the expectation that a huge new stimulus package is on the way in China. On the back of regional lenders and the PBoC recently cutting rates, traders are now eyeing the prospect of a new fiscal deal which should help boost demand for crypto.
Blackrock ETF News
Finally, news that Blackrock has applied to the SEC to launch a Bitcoin ETF is also helping lift sentiment. One of the biggest funds globally putting its faith in crypto during a tough regulatory crackdown period has been taken as a show of strength by bulls and should help keep BTC supported near-term.
Technical Views
BTC
The correction lower in Bitcoin has seen price moving within a well-defined bear channel. The structure can be viewed as a bull flag, however, and while 24930 holds as support, the focus is on a break of the channel top and the 27415 level signalling a move back up to 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.