BTC On Watch
Bitcoin prices continue to hold very tightly to 41510 support level (and longer term rising trend line) here as price remains within the large falling wedge pattern which has framed the reversal lower from all time highs. With indicators having flattened out here and price stagnating, the catalyst for further downside looks increasingly hard to find. With this in mind, the market appears to be opening itself up to a potential short-squeeze in the near term. With open interest at all time highs, but the market unable to break lower, bulls should be on the look out for a positioning clear out with a break of the 45405 level targeting a test of the 52260 level as an initial target.
Keep An Eye On
While the correlations aren’t exact, BTC is behaving a lot more like traditional risk assets and with that in mind, USD is key to keep an eye on. If USD continues to correct lower, this will be good news for BTC short-term. On the other hand, a recovery will weigh on BTC sentiment. Broader risk themes too, such as Ukraine/Russia tensions, need to be monitored also.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% and 70% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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.