BTC Breakout Stalls

For now, the rally in BTC has stalled into the $80k marker with price now spending 4 days capped at the level. Better optimism around a potential end to the US/Iran war has been a big driver of the move higher recently in BTC, with the crypto market rebounding amidst the broader uptick in risk assets we’ve seen. However, even the sharp move lower in USD today has been unable to push BTC above $80k, suggesting other factors are at play. Given the rally we’ve seen in recent weeks with BTC up more than 20% in April, profit taking is a likely factor here, especially with the FOCM looming midweek and the hawkish risks assigned to that meeting.

FOMC On Wednesday

On the FOMC front, traders are wary of the Fed sounding more hawkish in its forward guidance along with some upward revisions in its economic forecasts, particularly inflation. With the latest US inflation reading confirming a 1% jump in CPI last month, and energy prices still at elevated levels, price pressures are showing no signs of abating. With that in mind, the Fed is likely to warn of the need for US rates to stay at higher levels for longer, keeping USD underpinned near-term. Beyond the meeting however, BTC could start to find higher ground once again if we get a further breakthrough between the US and Iran and traders start to get a stronger sense that a proper peace deal is coming.

Technical Views

BTC

The rally in BTC has stalled into the $80k level and the bull channel highs. While staled here, a fresh rotation lower within the channel can be seen. However, while support at $69,605 holds, focus is on a fresh break higher with $94,450 the next target for bulls.