Big Bitcoin Moves
We’re seeing plenty of volatility in Bitcoin at the start of the new week. The leading digital asset was seen gapping higher at the open today, hitting its highest levels since the start of the month before reversing under fresh selling pressure. Price is currently holding above the 27415 level, keeping the focus on further upside while above there. News of a likely deal on the US debt ceiling fuelled a surge of demand for crypto with risk assets set to benefit sharply from an historic debt default being avoided.
US Regulatory Crackdown
However, at the same time, warnings over the US administration’s regulatory crackdown on crypto are dampening bullish sentiment. Earlier this week we heard Elon Musk, who was once largely responsible for driving an explosion of demand for crypto, warning that, against the current backdrop, he wouldn’t advise anyone to buy crypto currently. We’ve also heard Republican candidate Ron DeSantis warning that the Biden government is going after Bitcoin and could end up “killing it” completely.
Fed Impact
One further element to monitor is the shift in Fed sentiment which might also act as a hurdle for BTC bulls. With the Fed now widely pegged to hike rates against next month, along with reduced expectations rate cuts later this year, a further rally in USD might hold BTC back near-term.
Technical Views
BTC
The correction lower in Bitcoin has stalled around the 26000 level with the market subsequently bouncing and breaking back above the 27415 level. Price is now trading back up into the contracting triangle pattern and with momentum studies pushing higher, the focus is on a continuation to the upside while price holds above the 27415 level.
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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.