Bitcoin Tests Above March Highs

Bitcoin prices are on watch this week after a solid move higher last week saw the futures market breaking out above the March highs to hit its highest level since early Feb. The market has started a little softer today after gapping lower at the open amidst ongoing uncertainty around the Iran war. However, optimism remains the key driver for now and any reports that US/Iran negotiations are getting back on track should fuel fresh upside in risk assets, supporting BTC near-term. The caveat to this is that news of any rising tensions or hostile rhetoric will likely see BTC peeling off again as USD and crude move higher. Reports that the US has forcibly seized an Iranian tanker in the Strait of Hormuz, along with Tehran’s threat of retaliation, reflect how precarious the situations is with plenty of volatility risk seen near-term.

Massive ETF Inflows

The latest movements in the ETF market suggest that investors are expecting continued upside in BTC. ETFs recorded net inflows last week reached almost $1 billion, marking their highest level since January. With Morgan Stanley recently launching its in-house BTC investment product, and the SEC due to rule on further ETF applications imminently, demand for BTC looks healthy again suggesting that if the Iran war can be concluded, the subsequent period of risk-on market action should favour a firm push higher in BTC.

Technical Views

BTC

For now, BTC remains within the corrective bull channel off the YTD lows, still capped by the $80,185 level. This is a key pivot point for the market and a break higher will be firmly bullish turning focus to $94,450 next, in line with bullish momentum studies readings.