Deep Tide TechFlow News, January 9, QCP Capital's latest analysis points out that Bitcoin rebounded to $95,200 last night after successfully testing the key support level of $92,500. However, after news emerged that the U.S. government plans to sell seized Silk Road Bitcoins, the outlook for Bitcoin turned bearish during today's Asian early trading.
Cryptocurrency prices continue to be influenced by macroeconomic headwinds. The minutes from last night's Federal Reserve meeting showed a more hawkish stance. The Federal Reserve indicated that, given rising inflation risks, it will slow the pace of interest rate cuts. The ADP employment report released yesterday also added to macroeconomic uncertainty, showing a slowdown in private sector hiring and wage growth. This contrasts sharply with the robust job market depicted by Tuesday's JOLTS job openings data.
In the options market, all term curves have steepened, with the 3-6 month spread widening by 1.5 volatility points and the 6-12 month spread rising above 1 volatility point. The trading desk continues to observe that near-term volatility is under pressure, with at-the-money options expiring on January 17 down 3 volatility points from last night.
QCP expects Bitcoin to consolidate in the $92,000 - $95,000 range during today's U.S. market closure. If it falls below $92,000, it may further test the psychological level of $90,000.
