Bitcoin Volatility Persists
Bitcoin prices continue to fluctuate wildly as the leading crypto asset plunges almost 7% on Monday before bouncing back. BTC futures traded down sharply below the $100k mark yesterday before demand surfaced and drove price back up above the level. Still down around 7% from the all-time highs printed last week, BTC remains in a precarious position with the potential for a double top formation to lead to deeper selling unless bulls can regain momentum quickly.
US Stock Market Volatility
A drop in risk appetite this week on the back of the DeepSeek China AI shock has added to volatility in crypto assets. US tech stocks were seen plunging yesterday with more than $1 trillion wiped off US stock markets as traders reacted to the news. For crypto, the emergence of demand into the lows yesterday is a reassuring signal for bulls that big money is still positioning for a breakout long this year.
Fed in Focus
Looking ahead, traders will be keeping a close eye on the Fed tomorrow. While no change in monetary policy is expected this week, traders will be keen to hear THE Fed’s guidance on rates given the recent dovish shift in market pricing. If the Fed leans on the dovish side, expect this pricing to creep higher for March and May, leading USD down and crypto higher again. However, if the Fed pushes back, we could see risk assets plunging as USD rallies.
Technical Views
BTC
The reversal lower in BTC has stalled for now into a test of the broken bear channel highs and the 100,195 level. While this area holds, focus is on a recovery and a fresh test of the 107,955 with a view to a breakout to new highs. Below there, 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.