Bitcoin Reverses Gains
It’s been a wild week for the Bitcoin market. Following a more than 10% gap higher at the open on Sunday evening, the futures market has now reversed all of those gains, closing the gap to trade down below Friday’s closing price. The move higher at the start of the week came in response to news from Trump on the potential US strategic crypto reserve, which has been the source of much anticipation and speculation recently.
Trump Announcement Not Enough
However, since listing five cryptocurrencies to be included in such a fund, the crypto market has since collapsed as focus has swung back to the burgeoning trade war as US tariffs came into effect against Canada, Mexico and China, prompting retaliatory moves from Canada and China. With the broader risk complex sinking lower in light of these developments, we’ve seen a massive exodus of institutional capital from BTC ETFs with over $1billion of longs liquidated in this turn lower.
Trade War Remains Key
The issue for Bitcoin and the broader crypto market now is that the trade war looks likely to remain the bigger focus until such time as a crypto reserve is finally created. While Trump’s comments were welcomed, they’ve proved insufficient to keep the market supported. If the trade war intensifies now, with further action from the US against Canada, Mexico, China or other trading partners, we could see Bitcoin sinking deeper near-term.
Technical Views
Bitcoin
The reversal lower in BTC has seen the market breaking back below the bull channel support and the $91,750 level. While below there, focus is on a retest of the $74,655 level next. To the topside, back above $91,750 the key level to watch is $100k with bulls needing to see a break back above that region to turn focus back onto the current highs.
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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.