Critical Support Test for Bitcoin
BTC Under Pressure
Bitcoin bulls are holding onto their seats today following a heavy push lower over the last 48-hrs which ahs seen the futures market breaking down to fresh YTD lows. The market is now just about remaining above the November lows with fears of a much deeper push to come if that level breaks. A rebound in USD and a fresh downturn in risk assets has seen crypto markets coming under heavy selling pressure. The move lower has seen more than $1.5 billion in BTC liquidation in the last 24-hours as fresh tariff threat from the US rattled markets.
Bearish Risks
Looking ahead, BTC remains vulnerable to further downside given the threat of further hostility from Trump. Any news that trump will go ahead with the tariffs threatened against Canada will certainly see risk assets recoiling deeper. Additionally, if USD continues to recover lost ground this should also weigh on BTC. Trump is expected to nominate Kevin Warsh today to take over from outgoing Fed chair Jerome Powell. Warsh’s reputation as a hawk is fuelling the USD rally we’re seeing today which could extend furtehr near-term keeping BTC pressured lower. Any news over the weekend of intensifying geopolitical risks, namely US/Iran tensions, will also be a threat to BTC going into next week. As such, the near-term outlook remains weak for now with prices likely to remain heavy.
Technical Views
BTC
The sell off in BTC has seen the market breaking below the bull channel with price now testing the November lows and $80,185 support area. While this area holds we could see a double-bottom form, setting up price for a reversal higher. If that region breaks, however, focus turns to much deeper support at the $69,605 level next.
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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.