Bitcoin Rallying
Bitcoin prices have crossed back above $30k this week for the first time since June 2022 as the crypto rebound continues. Dwindling Fed rate-hike expectations as well as fresh demand incentives linked to recent banking sector turmoil have seen the leading crypto asset rallying firmly in recent weeks. Bitcoin futures are now up more than 50% from the March lows as the rally off the last year’s lows notched gains of more than 105%.
US Inflation Falling - Fed Tightening Expectations Falling
The recent cooling of US inflation has played a large part in setting the market’s Fed rate hike expectations along a lower path. So too has the recent banking crisis which rocked markets just a few weeks ago. Alongside further entrenching the likelihood of a reduce pace of Fed tightening, those banking troubles have put fresh emphasis on the intellectual debate around the benefits of decentralised crypto assets versus traditional FIAT currency, renewing demand for the sector along those lines.
Bullish Outlook
Looking ahead, BTC looks set to gain further should the current narrative of reduced Fed tightening continue to gain traction. Tomorrow’s US inflation data will be the next key catalyst. Should prices be seen cooling further last month, BTC looks poised to advance further this week.
Technical Views
BTC
The breakout above the 28110 level is a key bullish development for the market. With momentum studies turned bullish, the focus is on a continued push higher and a test of the 32185 level next. To the downside, any drop back below the 2811 level will see 24930 coming into view as the next support to watch.
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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.