CoinVoice has learned that QCP Capital's latest analysis indicates that after successfully testing the key support level of $92,500, Bitcoin rebounded to $95,200 last night. However, after news emerged that the US government plans to sell confiscated Silk Road Bitcoin, the outlook for Bitcoin turned bearish in early Asian trading today.
Cryptocurrency prices continue to be affected by adverse macroeconomic factors. The minutes from last night's Federal Reserve meeting indicated a more hawkish stance. The Fed stated that, given rising inflation risks, it will slow the pace of interest rate cuts. The ADP employment survey released yesterday also added to macro uncertainty, showing a slowdown in private sector hiring and wage growth. This contrasts sharply with the strong job market depicted in the JOLTS job vacancies data released on Tuesday.
In the options market, the curves for all maturities steepened, with the 3-6 month spread expanding by 1.5 volatility points and the 6-12 month spread rising to over 1 volatility point. Trading desks have continued to observe pressure on near-month volatility, with at-the-money options expiring on January 17 falling by 3 volatility points compared to last night.
QCP predicts that Bitcoin will consolidate in the $92,000-$95,000 range during today's US market closure. If it breaks below $92,000, it may further test the $90,000 round number. [Original link]
