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BTC Under Pressure
Bitcoin prices have come under fresh selling pressure today. Following a firm push higher yesterday, BTC futures have shed almost 5% from Monday’s peak. The driver behind the move is news that the failed crypto exchange Mt. Gox is beginning to offload the roughly $9 billion worth of Bitcoin held in its bankruptcy estate.
Mt. Gox Crypto Moves On Watch
According to data from industry analytics group’s CryptoQuant and Arkham Intelligence, all 137k units of Bitcoin were moved from the exchanges wallet to begin the process of returning them to creditors. The key question now is whether those receiving the digital asset will hold onto them or sell them. If we se high levels of selling, this will weigh on BTC driving prices lower near-term.
Bullish Outlook Remains
Despite the current focus on this situation, the price reaction from any reported selling is likely to be short-lived. The broader macro backdrop remains bullish for BTC with US regulators looking increasingly friendly towards the crypto market, institutional demand continuing to rise and the Fed expected to begin easing monetary policy this year.
US Inflation
Looking ahead this week, US PCE data on Friday will be closely watched. With USD currently under pressure, any fresh downside in price data should spur further selling in the Dollar, helping underpin risk appetite and lead BTC higher.
Technical Views
BTC
The rally in BTC has stalled for now into a test of the bear channel highs. Momentum studies are weakening here, suggesting growing risks of a pull-back lower. Key sup[ort levels to note are 66.625 and 64.540, with bulls needing to defend this area to keep the near-term focus on a breakout higher. Notably, we have a buy limit in the Signal Centre today set at 66.700, suggesting a preference to buy into any further weakness.
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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.