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Post-SEC Slump Continues
Bitcoin bulls are currently battling against a case of ‘buy the rumour, sell the news’ on the back of the recent SEC spot-bitcoin ETC approval. Since news of the approvals came through, Bitcoin futures have fallen around 15%, putting the market down around 8% from the 2024 opening price. In all, the combined correction lower across the crypto market has wiped out around $100 billion in longs.
Fed Easing
However, looking ahead there is plenty of reason to be optimistic on Bitcoin. Firstly, the anticipated easing cycle from the Fed this year should be firmly supportive for Bitcoin and other risk assets. With the Fed widely expected to start easing by March, the current correction in Bitcoin looks likely to offer better levels for longer term bulls to position.
Bitcoin Halving Event
Additionally, the upcoming Bitcoin halving event in April is also expected to act as a significant bullish catalyst for the market. Previous halving events have spurred major bull phases in the market and given the prospect of potential Fed easing coinciding with this year’s event, there is plenty of room for Bitcoin to advance in coming months.
Technical Views
Bitcoin
The correction lower from the 48350 level highs has seen the market breaking back below the 45520 level. Price is now close to testing key support at the 40345 level where we also have the bull trend line. This is a key pivot for the market which bulls need to defend in order to keep the focus on further upside near-term.
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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.