BTC Rebounding on Tuesday
Following a sharp move lower yesterday, which saw the market hitting its lowest level since November, BTC are now rebounding firmly. The futures market has rallied around 8% off yesterday’s multi-month lows, benefitting from a softer USD over the last 24hrs. A shift in Fed outlook recently has cast clouds over the BTC rally with the market correcting from December highs. However, prices action looks to be stabilizing now with the market bouncing off the key, 91.750 support. While this level holds, the focus is on a return to highs over Q1.
Trump Optimism & Institutional Demand
The improvement in sentiment looks to be linked to fresh optimism ahead of Trump returning to office next week. Expectations of a pro-crypto administration have seen strong demand in BTC dips in recent weeks. Indeed, news of yet further, mammoth BTC purchases by Michael Saylor’s MicroStrategy fund have been taken as a sign that smart money is still firmly positioned for a bull run over 2025. This latest purchase comes after news of a huge sale share at the company, due to take place on Jan 21st as the company looks to divert more assets into Bitcoin purchases.
US Inflation Risks
Near-term, we could see fresh volatility this week as traders brace for the latest US inflation data on Wednesday. If a fresh rise in inflation is seen, as forecast, this could see a renewed rally in USD as traders further scale back Fed easing expectations. However, any dips should prove well supported with longer-term players still looking to buy into an expected Trump-driven rally this year.
Technical Views
BTC
The sell off in BTC saw the market briefly dipping below 91.750. However, price has since recovered firmly above the level and is now fast approaching a test of the bear channel highs and the 100k mark. This is a key pivot for BTC and a break of this region will be firmly bullish, putting focus back on December 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.