BTC Breaks Key Resistance
Bitcoin is on watch today following a sharp rally yesterday which has taken the futures market back above the $108,855 level. BTC is now sitting just below the ATH and looks poised for a breakout to fresh highs this week provided incoming US data today doesn’t upset bulls. Yesterday, BTC jumped more than 4% on the day as the US ADP employment reading recorded its first negative monthly reading since early 2023 at -33k, down from 29k prior and sharply below the 99k the market was looking for.
NFP Due Today
Focus now turns to today’s headline NFP print which is forecast at 111k down from 139k prior. On the back of yesterday’s downside surprise there is now chatter going around of a sub-100k reading. If seen, this should fuel an uptick in near-term Fed easing expectations, creating room for a breakout higher in BTC today as risk assets rally further. Alongside the headline NFP print, the market will also be watching the latest unemployment rate reading, expected to tick up to 4.3% from 4.2% prior, and wage growth, expected to drop to 0.3% from 0.4% prior. If confirmed, alongside a drop in the NFP, this data should further bolster near-term Fed easing expectations. Only an upside surprise in the NFP today is likely to cap the rally in BTC for now.
Technical Views
BTC
With price now back above the $108,855 level, focus is on a breakout to fresh highs with the $120k mark and bull channel highs the next objective for bulls. Near-term, the bullish outlook remains while price holds above the $100k mark and the bull channel lows.
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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.