-1734517570.png)
BTC Pulling Back
Following a breakout move to fresh highs yesterday, BTC prices are pulling back today with the futures market currently down around 5% from highs. The move lower likely reflects some profit taking ahead of the FOMC tonight. With the expectation that the Fed will cut rates further, but give a less dovish message, USD stands to gain through the end of the week which could fuel some deeper BTC unwinding near-term. However, looking ahead, BTC bull drivers remain clear and the overall macro backdrop still favours a fresh rally into early 2025 though we could see some more volatility near-term.
Strategic Bitcoin Reserve Optimism
Anticipation around an expected US strategic Bitcoin reverse is growing on the back of recent comments from Trump. Legal moves in Texas also show initial steps towards such a reserve while some corporates have also started following suit and building a BTC reserve. The finite supply of BTC means that there is unlimited scope for price to rise as scarcity increases. A slew of record purchases from MicroStrategy as well as many states funds buying into BTC ahead of Trump taking power, are a strong indication of the outlook on BTC. With that in mind, though we could see a deeper correction lower near-term, BTC should find strong support and is expected to push to new highs into next year.
Technical Views
BTC
The rally in BTC has stalled for now into the $107,85 level and the bull channel highs. Price is correcting lower within the channel though, while $100,19 and the bull channel lows hold in place, focus is on a continuation higher. Below there, $97,47 and $93,96 are the next supports to note.
.png)
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
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.