Bitcoin Futures Test Major Overhead Resistance! Following the approval of the spot Bitcoin ETFs on Jan 10th, BTC futures have rallied by more than 30%. Capital inflows have remained consistent in these ETFs, supporting higher Spot and Futures prices.
The Decoupling:
The new demand brought by the approval of the Spot ETFs have given both retail, and institutional investors the opportunity to add exposure to BTC in diversified investment portfolios. Prices have managed to go higher, despite higher treasury yields and real interest rates. Interest rate cut expectations have also been reduced, yet BTF futures have rallied.
We are witnessing a decoupling of macroeconomic influences on BTC futures. Despite the fact that financial conditions are tighter, this speculative risk asset continues to rally. This is very supportive of prices in the near term, and a sign that demand for exposure to “digital gold” is real.
Technicals:
From a technical perspective, BTC futures gapped higher on 2/28. This will serve as major support in the near term, and prices could correct if we were to break and close below the gap. To break all time highs, we will need to break and close above the major overhead resistance level of $68,300-$69,500.
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