According to BlockBeats, QCP Capital's latest analysis pointed out that Bitcoin rebounded to $95,200 last night after successfully testing the key support level of $92,500. However, after the news that the US government plans to sell the seized Silk Road Bitcoins, the outlook for Bitcoin turned bearish in early Asian trading today.
Cryptocurrency prices continue to be impacted by macro headwinds, with the release of the Fed minutes last night showing a more hawkish stance. The Fed indicated that it would slow the pace of rate cuts given rising inflation risks. The ADP employment survey released yesterday also added to macro uncertainty, showing a slowdown in both private sector hiring and wage growth. This contrasts with the stronger job market portrayed by the JOLTS job openings data released on Tuesday.
In the options market, all maturity curves have steepened, with the March-June spread widening by 1.5 volatility points and the June-December spread rising to more than 1 volatility point. The desk continues to observe pressure on near-month volatility, with at-the-money options expiring on January 17 falling 3 volatility points from last night.
QCP expects Bitcoin to consolidate in the range of $92,000-95,000 during the US market closure today. If it falls below $92,000, it may further drop to the round mark of $90,000.
