Bitcoin Bulls Looking For Next Catalyst
BTC Holding Near Highs
Bitcoin prices remain underpinned this week with the futures market continuing to consolidate above the $83,385 level, just below the September highs. The bull move off the August lows has stalled for now though focus remains on a resumption of the uptrend while current support holds. The recent shift lower in Fed tightening expectations for this month has helped support the market for now. We’re also seeing a broad-based recovery in risk assets this week amidst lower oil prices as global supply levels improve which is also helping demand for BTC.
ETF Flows
Looking ahead, BTC ETF flows will be key to watch for traders looking to gauge the next directional move in Bitcoin. A surge in ETF demand through September, including the second largest single day of inflows, saw ETF flows turn net-positive for the year. While that bullish momentum has stalled for now, the general view for now is that we will see a fresh wave of demand enter the market to take BTC higher again. This could come in the form of a fresh move lower in oil prices if we see any progress in US/Iran negotiations, or a downshift in Fed tightening expectations for the remainder of the year in response to any further data weakness of dovish Fed commentary.
Technical Views
BTC
For now, BTC remains atop the $83,385 level and while above here focus is on a continuation higher towards the $94,730 level next. Momentum studies have flattened out recently, reflecting the loss in bullish vigour. However, while that support holds the upside bis remains. If we break back below that level, $74,270 is next support to watch.
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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.