BTC Drops Back
Following a fresh push higher this week, BTC prices have once again turned back under the $108,855 level. The marker has proved a key resistance level this year with price currently suffering a fourth failure at the level. While the market holds below here, risks are skewed towards a deeper correction lower.
Institutional Demand
Institutional demand has returned this week with BTC ETF’s recording just under $0.4 billion in inflows, led by BlackRock which continues to attract the largest inflows. The ebb and flow of institutional money has become a key driver of BTC this year following the approval of BTC ETFs earlier in the year. Given the resistance we continue to see around the $108,855 level, the question now is whether BTC can make a sustained break above the level, leading to a fresh bull phase, or if a correction lower is coming?
US/China Trade Talks
The key issue to monitor here is US trade talks with China. BTC prices gained ground solidly last month as tensions between the two countries eased and a 90-day negotiations window was agreed. However, a lack of follow through after that saw BTC drifting lower again as institutional buyers moved capital elsewhere. However, there s growing optimism that trade talks are back on track now and if we see any positive headlines near-term this could easily pave the way for a breakout move in BTC. On the other hand, nay negative trade news runs the risk of fuelling a heavy exodus of capital from Wall Street, putting BTC at risk of a steep drop lower. As such, incoming US trade news flows will be key to monitor for BTC directional cues.
Technical Views
BTC
For now, BTC continues to struggle at the $108,855 level and while this region holds as resistance, a fresh test of the $100k mark looks viable. This is the key near-term pivot for the market with bulls needing to defend $100k to keep the focus on an eventual break higher towards the channel top around the $120k mark next. Below 4100k, $91,750 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.