Bitcoin Rallying on Monday
Bitcoin prices are seeing better demand on Monday with the futures market having now clawed back around half of the losses suffered on Friday. Price action has been muted in recent sessions though has been drifting lower, with the market still below the key $100k mark for now. Rising global uncertainty linked to Trump’s trade tariff announcements and other news flows have weighed on Bitcoin recently. Additionally, the absence of any pro-crypto moved from Trump has left bulls empty handed, leading to the move lower we’ve seen from the YTD highs.
Mainstream Demand Growing
Despite the pullback from highs, interest in Bitcoin remains elevated. News that an increasing number of corporates have been buying into Bitcoin via ETFs is a bullish sign for the market. Institutional demand has been a key supporting factor for Bitcoin this year with smart money still anticipating a rally over the year ahead despite current downside volatility. Indeed, there has also been reports of US endowments such as Universities and charities buying into Bitcoin alongside some pension funds, again reflecting the growing mainstream demand for crypto.
US Bitcoin Reserve
Much of this demand is hinged on the view that Trump will make good on his promise to make the US a ‘crypto superpower.’ Specifically, bulls are waiting on news linked to the creation of a US strategic Bitcoin reserve which is seen as the ultimate bullish catalyst. Any news flow regarding steps towards this will be firmly bullish for BTC. Meanwhile, the longer w ego without anything pro-crypto from Trump, the lower we are likely to drift.
Technical Views
BTC
For now, price continues to trade within the 91,750 – 107,855 range. A possible double top formation is still in play given the latest failure at range highs and any downside break of the 91,750 level will be firmly bearish, opening the way for a much deeper push lower. To the topside, if bulls can get back above the 100k mark, focus will turn back to range highs and the 113,690 level above.
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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.