Bitcoin Testing Major Level As Bulls Eye Breakout
BTC Breaking Out?
Bitcoin prices are back on the offensive today with the futures market pushing above last week’s highs to trade its highest level since Feb 3rd. The move comes amidst a better tone to risk appetite recently as US/Iran negotiations continue, further bolstered by strong ETF inflows. Crypto markets have welcomed the US/Iran ceasefire and while tensions remain elevated (reflected in higher oil prices today), crypto bulls are indulging in optimism for now. This is most evident in the tsunamic of ETF inflows we’ve seen over the last week with BTC ETFs recording almost $1 billion in inflows last week, the highest for the year. Indeed, ETFs has now seen three straight weeks of net-inflows, reversing the dynamic which took hold earlier in the year as institutional investors fled crypto positions.
Near-Term Risks
Looking ahead, a return to BTC upside is likely tied to a proper peace dela being agreed between the US and Iran. If negotiations break down and we see a full-scale return to war, this will have heavy risk-negative repercussions, likely see ETF flows change bearish. As such, there is still a great deal of risk near-term and further volatility is likely while traders navigate news flow whipsaw on the Iran war. However, if we get any news of a breakthrough in negotiations and a peace deal looks likely, BTC stands to surge higher as risk appetite soars.
Technical Views
BTC
The rally in BTC has seen price revering back up to the bull channel highs and the $80,185 zone. This is a big resistance area for the market and while this level holds, we could still see a fresh downturn. If bulls can breach this zone, however, focus turns to $94,450 as the next bull objective, in line with bullish momentum studies readings.
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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.