Bitcoin Testing Channel Lows As Sell-Off Intensifies
BTC Heavily Sold
Bitcoin has come under heavy selling pressure through the back end of the week with the futures market on course for its third connective losing day, now down almost 7% from the week’s highs. The move comes amidst a fresh uptick in USD as traders navigate concerning headlines on the US/Iran war. Two separate sets of tit-for tat military exchanges this week have raised fears that the ceasefire is at risk of collapsing. Despite the US insisting that the ceasefire is still in place, Iran has warned that US attacks constitute a breach of the ceasefire and any further attacks will be dealt with more harshly. Risk assets have recoiled today accordingly as USD and oil prices push higher again. Against this backdrop, BT looks vulnerable to further losses near-term as investors reallocate away from riskier positions into safe-haven plays.
US Data & Weekend Risks
Near-term, BTC could move lower today if we see any data strength across a slew of incoming US releases this afternoon. Core PCE and prelim q/q GDP will be closely watched with any upside likely to further strengthen the view that the Fed will hike rates this year. If we do see any strong readings today, USD is likely to push higher accordingly, further diluting risk sentient and pulling BTC lower into the weekend. Into next week, focus will be on incoming headlines around the Iran war with the lines very evenly drawn: any further attacks or breakdown in negotiations will see BTC heavily lower while any breakthrough in talks or signs that a deal is coming should see BTC rebounding sharply higher.
Technical Views
BTC
The sell off in BTC has seen price trading below the $74,270 level, now testing the bull channel lows. 69,605 will be the next support to watch below here with bulls needing to defend that level to prevent a deeper drop towards the 62,470 zone.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% and 74% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
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.