According to ChainCatcher news, QCP Capital's latest analysis indicates that Bitcoin rebounded to $95,200 last night after successfully testing the key support level of $92,500. However, following news that the U.S. government plans to sell seized Silk Road Bitcoins, the outlook for Bitcoin turned bearish during the Asian early trading session today.
Cryptocurrency prices continue to be affected by adverse macro factors, with last night's release of the Federal Reserve meeting minutes showing a more hawkish stance. The Federal Reserve indicated that, given rising inflation risks, it will slow the pace of interest rate cuts. Yesterday's ADP employment report also added to macro uncertainty, showing a slowdown in private sector hiring and wage growth. This stands in stark contrast to the stronger job market depicted by Tuesday's JOLTS job openings data.
In the options market, all term curves have steepened, and the 3-6 month spread has widened by 1.5 volatility points, with the 6-12 month spread rising to over 1 volatility point. The trading desk continues to observe pressure on near-month volatility, with at-the-money options expiring on January 17 dropping 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 - $95,000. If it falls below $92,000, it may further probe down to the $90,000 round number.
