US/China Optimism
Following some initial weakness yesterday, Bitcoin prices reversed sharply to end the day firmly higher. Bitcoin futures traded back up above the $108,855 resistance and stopped just short of testing the all-time highs. The move came amidst fresh optimism over US/China trade talks as delegates met in London to get negotiations back on track with discussions set to continue today. There is also talk of Trump planning to ease restrictions on US chip exports to China in exchange for easier access to rare earth materials. Together, these developments have helped boost risk sentiment this week with traders now once again sensing that a US/China trade deal could be achieved within the current 90-day negotiations window.
Corporate Buying
Bitcoin is also being boosted by news of further large-scale corporate purchases. Japanese hotel group/crypto investor Metaplanet shared plans that it seeks to raise around $5 billion in capital to buy Bitcoin ETFs. This comes after Strategy recently announced a further $75 million worth of BTC purchases, now making it the largest holder of BTC globally at around $65 billion, more than the US and China.
Bullish BTC Risks
Looking ahead, BTC looks poised for a fresh breakout here. News of high profile buying as well as an expected uptick in institutional ETF demand means that the market is likely to remain supported. Any further positive headlines from the US/China trade front should provide the catalyst for a fresh rally near-term.
Technical Views
BTC
The rally in BTC has seen the market moving back above the $108,855 level. With momentum studies turning bullish, focus is on a continuation higher with the bull channel highs around the $120k mark the next objective for bulls. To the downside, $100k remains the key 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.