BTC Higher on Tuesday

Bitcoin prices are higher again today, extending yesterday’s rally off the month’s lows. The futures market remains firmly range-bound for now with price trading around the midpoint of the contracting triangle pattern which has framed the consolidation we’ve seen over the last three months. The move higher this week comes despite some disappointing news on the regulatory front. The SEC cancelled a meeting for discussions around new crypto fundraising rules, delaying clarity for investors. This comes after the Senate began its five-week recess on Saturday without advancing the Clarity Act which crypto traders had been waiting for.

Softer USD

Despite these developments, BTC is pushing higher this week linked to the shift lower we’ve seen in Fed tightening expectations. Market pricing for a September hike has fallen to around 30% from above 60% last week fuelled by weakness in recent US data points. With the US Dollar softening accordingly, there is room for BTC to continue higher near-term particularly if tomorrow’s FOMC mins lean to the dovish side. A lack of detail in the post-meeting press conference created confusion around the meeting and traders will be hoping for greater clarity tomorrow. However, if the minutes lean to the hawkish side (possible given the three dissenting votes for a hike) this could fuel fresh buying in USD, capping the rally in BTC for now.

Technical Views

BTC

For now, BTC prices remain trapped between support at the $62,470 level and resistance around $65,380. If prices do breach that upper limit, however, focus will be on a fresh push towards the $69,605 level next. If we turn lower instead, focus will be on the big $60k level support.