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BTC Slides on USD Buying
Bitcoin prices are looking a little more stable at the start of the week following on from the sharp drop we saw across the back end of last week. BTC futures fell more than 10% across Thursday and Friday as market jitters spooked crypto traders. A resurgence in hawkish Fed expectations has taken a toll on risk assets recently with crypto suffering as a result. Rising US bond yields in reaction to the hawkish tone of last week’s FOMC minutes are a major headwind for BTC and other digital assets. Should USD continue higher near-term this will no doubt see BTC coming under further pressure.
Powell On Watch
Looking ahead this week, crypto traders will be keeping an eye on Powell who speaks at the Jackson Hole Symposium on Friday. On the back of last week’s FOMC minutes, traders are wary of hawkish risks with the potential for BTC to see fresh declines if USD trades higher on the back of the event. The latest round of US inflation expectations and consumer sentiment will also be closely watched.
China & Risk Flows
Away from USD and the Fed, traders should monitor broader risk themes with BTC likely to trade lower if we see a fresh wave of risk aversion take hold. Fears over the health of the Chinese economy are one of the main factors affecting risk sentiment currently. While authorities have taken measures to support the economy, the risk of downside shocks remains significant meaning that BTC remains vulnerable to further selling near-term.
Technical Views
Bitcoin
The sell off in BTC has seen the market breaking down below the 27415 level and the rising trend line from lows seen earlier in the year. Price is now fast approaching a test of the next key structural support at the 24930 level. A break here will be firmly bearish, opening the way for a test of deeper support at 21390.
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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.