Bitcoin On Watch at Highs
Bitcoin prices are trading a little softer today following a reversal lower from yesterday’s breakout to fresh all-time highs. The futures market reached a peak of above $110k before sellers took price back down below the 2024 highs. We’ve seen plenty of volatility since Trump took office but the market is yet to show signs of follow through. Much has been made about the upside potential for Bitcoin given Trump’s promise to support the crypto community. However, with no moves yet, BTC price action is showing frustration and the market could be vulnerable to a long-squeeze unless Trump makes some crypto-positive noise this week.
Institutional Demand
Despite the lack of clear bullish drivers currently, bulls can take heart from the continued buying by Michael Saylor’s MicroStrategy fund. Saylor has continued to add record amounts to the fund’s long BTC position, banking on a fresh bull run over 2025. Indeed, institutional investors across the board have continued to grow their long positions this week view ETF inflows with BlackRock’s long total now standing at over $60billion combined for BTC and ETH funds.
Near-Term View
Looking ahead, there is room for BTC to make a proper breakout and continue higher if we hear some crypto bullishness from Trump. However, given the growing long position, if traders get the sense that Trump is putting crypto markets on the backburner while he focuses on other items on his agenda, we could see a sharp correction lower before an eventual breakout occurs.
Technical Views
BTC
The rally in BTC has failed for now on the first test above the 107,855 level. With momentum studies softening, a deeper correction is viable, though the broader bull view remains while we hold above 100,195. Below there, 91,750 is 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.