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BTC Spikes Higher

Following a slump over recent weeks, Bitcoin has regained upward momentum this week, breaking out to fresh 2023 highs. The move comes despite an uptick in US regulatory action against the crypto sector including exchanges and staking companies. Yesterday’s almost 10% rally marked the largest single-day increase for Bitcoin in over six months with many traders now looking for a fuller breakout beyond the 24930 level.
 

Ordinal Numbers Soaring

Interestingly, the rally in BTC comes despite an increase in hawkish Fed expectations linked to a spate of better-than-forecast US data. With inflation seen bouncing back sharply last month there had been fears of a fresh leg lower for BTC but the market appears to have gone the other way. One key driver behind the fresh buying in BTC is the surge in Ordinal inscriptions on the BTC network which passed 100k on Tuesday. Some key names in the crypto space have been moving to Ordinals, such as the Solana NFT Collection, which is bolstering confidence and driving demand higher.
 

Upside Risks for BTC

Looking ahead, the near-term outlook looks bullish for BTC. Industry data reveals a sharp uptick in institutional inflows over recent days (reportedly circa $1.6 billion). Some of the accounts seen buying are known whales, suggesting BTC might be at the start of a fresh bull move as more capital returns to the market following the heavy outflows we saw last year.
 

Technical Views

BTC

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The rally in BTC over recent months has seen the market breaking above several key resistance levels. Price is now testing the 24930 level and with momentum studies turning bullish, the focus is on a continuation higher towards 28110 while 22600 holds as support.

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