BTC Volatility

We’re seeing plenty of volatility in Bitcoin prices as we kick off the new week. BTC futures gapped lower at the open as uncertainty surged higher in the wake of Iran’s retaliatory attack against Israel. Fears of a wider conflict emerging have knocked risk appetite lower at the start of the week. BTC futures were down around 7% at the lows of the day before sentiment reversed on news that Hong Kong has approved spot-BTC and ETH ETF applications. The financial hub is looking to establish itself as a competitor in the space competing with Dubai and Singapore as regulators open up crypto markets to institutional demand.

Headwinds for Bitcoin

Despite the good news from Hong Kong, BTC is still facing some clear headwinds currently with a stronger US Dollar and rising global uncertainty causing the recent rally to stall. Looking ahead, bulls are hoping that the upcoming halving event, scheduled for next week, can help provide fresh impetus for a renewed push higher. With safe-haven inflow causing the Dollar to break higher, near-term prospects for a BTC rally look limited. However, if data and Fed commentary across the week cause any pullback in USD, this could pave the way for a fresh push higher, provided we don’t see any escalation between Israel and Iran.

Technical Views

Bitcoin

For now, Bitcoin remains within the 60695 – 74325 range which has framed price action over the last 2 months. Support at 64540 is holding, with the contracting triangle lows there also. Bulls need to see a break of the 69355 level and the triangle highs in order to turn focus back onto a test of highs. 81940 sits above as the bigger bull target with 49425 down below as the bear target.