Bitcoin Recovery on Watch
Bitcoin is on watch this week as bulls fight to lift prices and regain upside momentum. The futures market saw a strong reversal higher last week with BTC up around 13% off the YTD lows as an improvement in risk sentiment gripped markets following Trump’s tariff U-Turn. That initial relief has worn off with traders now looking a little more cautious, clearly sensitive to the risk that Trump could U-Turn back the other way. Also, with the US/China trade war still escalating, global growth prospects remain weakened.
Trade Headlines Remain Key
Looking ahead this week, BTC bulls will be hoping for fresh positive developments in the trade backdrop to help drive fresh buying. Any negative developments, however, risk sending BTC back down. The ideal scenario for bulls would be a sign that the US and China are prepared to negotiate. Given the recent tit-for-tat escalation in tariffs between the two sides, risk sentiment has struggled to see follow-through on the back of last week’s improvement. However, if we get any news suggesting that Trump and Xi Jin Ping are prepared to walk tariffs back to allow room for negotiations to take place, this would be firmly bullish for risk assets and could drive a breakout move higher for Bitcoin.
Technical Views
BTC
The rally off the 74,655 level has stalled for now into a fresh test of the bear trend lien from YTD highs. With momentum studies bullish, focus remains on a fresh push higher while the market holds above 80,185. Above market, 91,750 and the retest of the broken bull channel lows will be the key pivot to watch. A move back above there turns focus back to the current all-time highs while a failure there could see price drifting lower again.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
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.