BTC Bounces Back

Following the heavy selling we saw across August, Bitcoin prices have turned higher in recent sessions. BTC futures have rallied off the September lows printed last week, trading higher by around 8.5% into the European morning on Monday. BTC came under fresh selling pressure last week amidst fears over the sale of FTX’s assets. The bankrupt broker gained court approval to begin the sale of its roughly $3.4 billion worth of digital assets, including almost $500 million worth of Bitcoin.

FTX Fears Subside

Traders feared a huge wave of supply hitting the market would send crypto prices plunging across the board. However, the court has ordered the sale of assets be conducted in a measured way, capped at $100 million per week. As such, we’re seeing something of a relief rally in crypto, particularly BTC.

Fed on Watch

Looking ahead this week, the big focus will also be on the Fed. The September FOMC is not expected to see the bank adjusting policy. However, traders will be waiting to see how the bank signals its intentions going forward. If further hikes are seen, this may well lean on BTC near-term as USD trades higher. However, if the bank refrains from signalling further hikes this could be just the catalyst BTC needs for a fresh upside break.

BTC

The latest test of the 24930 level has seen the area holding as support for now with price since turning higher. The focus is now on local resistance at the 27415 level which, if broken, will see the retest of the broken bull trend line come into focus. With momentum studies turning higher the near-term bias remains bullish for now. 

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