BTC Under Pressure

Following last week’s rally and breakout above the 65,025 August highs, Bitcoin futures have reversed back below the level today. The leading crypto coin has come under heavy selling pressure through early European trading on Monday as crypto sentiment sees a shaky start to the week. The move is being pegged to the weak tone we’re seeing to risk markets across the board on Monday as stocks and commodities edge lower in response to the growing risk of a wider war emerging in the Middle East.

Bullish October Looming?

Despite the selling today, however, Bitcoin is on course to print its strongly monthly gain in September since 2013. Given that seasonal trend point to October as one of the best performing month’s for BTC, the rally through September is encouraging and bulls will be looking for the current correction lower to provide better levels for fresh longs for the month ahead.

Powell & US Data On Watch

In terms of potential bullish catalysts, focus will be on Fed’s Powell who speaks later today, followed by the NFP release on Friday. BTC bulls will be hoping for dovish signals from Fed’s Powell today, followed by weaker employment data on Friday to help boost near-term Fed easing expectations. This should give the broader risk complex a boost and feed into higher prices for BTC.

Technical Views

BTC

The rally in BTC has stalled for now into the upper bull channel area. Price is now trading back below the 65,025 level and while below here, focus is on a test of the 60,695 support next with the retest of the broken bear trend line just below. Bulls need to defend this area to keep focus on an eventual break higher and a test of 69,355