Bitcoin Bounces of Lows
Yesterday saw a strong reversal higher in Bitcoin with price action in the futures market stopping just short of posting a bullish engulfing candle on the day. Still, the almost 9% reversal higher off the day’s lows, and the potential for a double bottom with last week’s lows, is an encouraging sign for bulls who have been looking for any indication that the market might be about to recover.
Russia-Ukraine Peace Prospects
The move higher was driven by news that Ukraine is willing to accept a 30-day ceasefire with Russia to allow for peace talks to progress. With the prospect of an end to the war looking more hopeful, risk markets were firmly higher across the day, pushing Bitcoin prices north. Looking ahead, traders will be keeping a close eye on incoming news related to the situation with any positive developments likely to fuel a fresh rally in the market. Similarly, however, any negative news such as talks stalling or breaking down will likely see BTC come under heavy selling pressure as risk markets recoil lower.
Trump Crypto News
Traders will also be keeping an eye out for any more news on the recent announced US strategic crypto reserve. Bulls were left disappointed by news that the fund won’t make any outright purchases. However, long-term players cite the creation of the fund as a positive milestone which should help prices move higher across the year despite near-term volatility.
Technical Views
BTC
For now, the market continues to hold above the 50% fib retracement level and with a potential double bottom in place, recovery chances are growing. Near-term, bulls need to get back above the $91,750 level and broken bull channel lows to alleviate bearish risks and encourage fresh upside momentum.
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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.