NewsletterBitcoin (BTC) Technical Set Up Supports Tactical Shorts, What’s ahead?
Last week, the world’s largest cryptocurrency made a strong move to $25,000, however, it facing strong resistance at those levels. As of press time, BTC is trading 1% down at $24,615 and a market cap of $475 billion.
Bloomberg’s senior commodity strategist Mike McGlone explains how the current technical setup for Bitcoin supports tactical shorts. During the entire Fed tightening season, Bitcoin’s 50-week moving average has never crossed under its 200-week moving average. However, the possibility of that happening now has come closer.
However, if the BTC price manages to swing above $25,000, it would signal a divergent strength against the Fed’s decisions. The CPI data for January 2023 continues to suggest that inflation remains sticky and that Fed could continue to raise interest rates going ahead. In his latest tweet, Mike McGlone wrote:
Hollow Rally or Enduring Recovery? Bitcoin $25,000 vs. the Fed – Cryptos have never faced a US recession, Fed tightening and the Bitcoin 50-week moving average below the 200-wk. My long-term bias is quite bullish, but the 1Q bounce to good resistance may favor tactical shorts.
Bitcoin, Crypto and Stock Markets
Bitcoin and the broader cryptocurrency market rallied with the impetus provided by the surge on Wall Street. In fact, the crypto market has managed to outpace the traditional markets in 2023.
Since the beginning of 2023, the S&P 500 is up by 6% while the Nasdaq 100 is up by 13%. On the other hand, the MVIS CryptoCompare Digital Assets 100 Index of leading tokens is up 40%.
On the other hand, Hong Kong is planning to relax rules and allow retail traders to trade larger cryptocurrencies like Bitcoin and Ethereum. This would lead to increased liquidity in the crypto space going ahead. The retail backing has so far helped BTC surge by over 50% since the start of 2023. JPMorgan Chase & Co. strategist Nikolaos Panigirtzoglou said:
“This positive retail impulse year-to-date is naturally more dominant in crypto given the absence of institutional investors at the moment”.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Crypto Prediction Platform Polymarket Relaunches in U.S. Following CFTC Approval
- December Fed Rate Cut Prospects Strengthen After ADP Shows Deepening Labor Market Weakness
- Trump-Backed World Liberty Financial to Roll Out RWA Products in January
- Crypto Exchange Bitget Teams Up With Julián Álvarez to Spotlight GetAgent’s Trading Capabilities
- MSCI Index Removal Threat Grows as Strategy Enters Negotiation Talks, Saylor Confirms
- Bitcoin Price Prediction: Will Next Bull Run Push BTC to $100,000?
- Pepe Coin Price Risks 80% Crash as Alarming Pattern Forms and 6.5T Inflows
- Chainlink Price Surges 20%: What’s Driving Massive Upswing?
- Solana Price Poised for 25% Rally as ETF Inflows Surge Past $650M
- Will HYPE Price Reach $50 After Sonnet Finalizes Its $1B Digital Asset Merger?
- AIAO Price Prediction: Projected 659% Surge from $5.56 to $42.22 by Early 2026!
