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BTC Stalled For Now
Bitcoin prices are a little softer today again having reversed from the week’s highs on Tuesday. Position squaring ahead of the FOMC was the driver behind the pullback. However, we’ve yet to see BTC pushing higher again, despite the Fed cutting rates and maintaining a broadly dovish outlook. USD had dipped initially in response to the meeting but is looking more stable today, causing some stalling action across markets.
Fed Expectations
In many respects, the meeting was quite neutral with Powell signalling that the Fed will likely cut rates again or remain on hold, dependent on incoming data. As such, focus will now be on the next key US inputs with the delayed October and November NFP reports next week to be the headline data ahead of year end. If we see any fresh weakness in those reports, that should act as a catalyst for a string USD sell off, reviving upside in crypto and the broader risk complex.
ETF Flows
Notably, ETF flows have turned more bullish this week with the latest data showing a spike in institutional demand. If his dynamic remains, this should feed into higher BTC prices near-term. However, overall volume remains much lower than we saw earlier in the year and bulls will need to see a firm pickup if the market is going to undergo a recovery back towards YTD highs or risk a continued drift lower.
Technical Views
BTC
For now, the market remains anchored around the bull channel lows and the $91,750 level. If bulls can get back above this zone, the $100k level will be the next resistance to watch, opening the way for a recovery back towards $108,855 if broken. To the downside, $80,185 is the key support to watch if we drop lower.
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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.