Bitcoin Lacking Direction

Bitcoin prices continue to hold below the $100k mark as we move through the middle of the week. The recovery off the 91,745 level has run out of steam for now with the market seemingly awaiting fresh directional drivers. A weaker US Dollar has certainly helped Bitcoin bulls, helping bolster cross-market risk-appetite. However, Trump’s trade war with China still poses a big risk and with gold prices soaring, it seems that traders are happy to book gains elsewhere for now.

MicroStrategy Pauses Buying Spree

There has been a shortage of crypto-centric news from Trump this week which has taken Bitcoin out of the spotlight. The risk is that if Trump fails to make any pro-crypto announcements very soon, institutional investors will grow frustrated and cover their long positions for now. Indeed, news that MicroStrategy has paused its 12-week BTC buying spree certainly raises questions over the near-term prospects for Bitcoin.

Near-Term View

For now, it seems that the market is likely to remain in rangebound conditions unless we hear some pro-crypto news from Trump. Steps towards the creation of a US strategic Bitcoin reserve remain the key focus for bulls. As more time passes without any progress son this front, however, BTC can start to drift lower. Additionally, any uptick in US trade tensions will likely also create headwinds for Bitcoin.

Technical Views

BTC

Bitcoin prices continue to hover around the $100k mark mid-week, sitting just below for now. Momentum studies are flattening out, reflecting the lack of direction. 91,750 remains key support to watch on any downside move while 107,855 is the key barrier to deal with first on any upside break. Broadly speaking, the longer-term bull view remains though further consolidation and correction is likely near-term.