According to Deep Tide TechFlow news, on January 9, QCP Capital's latest analysis pointed out that after successfully testing the key support level of $92,500, Bitcoin rebounded to $95,200 last night. However, following news that the U.S. government plans to sell seized Silk Road Bitcoins, the outlook for Bitcoin turned bearish during today's Asian early session.
Cryptocurrency prices continue to be affected by macroeconomic headwinds, with last night's release of the Federal Reserve's meeting minutes showing a more hawkish stance. The Federal Reserve stated that, given rising inflation risks, it would slow the pace of interest rate cuts. Yesterday's ADP employment survey also added to macro uncertainty, indicating that private sector hiring and wage growth have both slowed. This stands in stark contrast to the strong labor market depicted in Tuesday's JOLTS job openings data.
In the options market, the curves for all maturities have steepened, with the 3-6 month spread widening by 1.5 volatility points, and the 6-12 month spread rising to over 1 volatility point. The trading desk continues to observe that near-month volatility is under pressure, with at-the-money options expiring on January 17 falling by 3 volatility points compared to last night.
QCP expects that during today's U.S. market closure, Bitcoin will consolidate in the range of $92,000 to $95,000. If it breaks below $92,000, it may further test the $90,000 round number.
