CRYPTO: Bitcoin - Bounces Back Above $70k After Friday Capitulation

Bitcoin had a range over the weekend of $67,324.98 - $71,465.34, Asia is currently trading around $70500, -0.20%. Bitcoin had a solid bounce off of the $60k area as risk turned higher after what looked like another leg of stops being executed. We have seen some huge deleveraging of risk, most notably in Metals and Crypto, could that be it for now ? Technically it remains in a bear trend and we would need to see demand like we saw on Friday return and form a base down here from which to move higher again. The first sell-zone is right here in the $72k-$76k area and then the $80k-$85K area where sellers should return initially.

• Holger Zschaepitz on X: “I like this chart from the latest note by credit legend Matt King, who shares sharp and often provocative ideas through Satori Insights. It shows a correlation between the change in the Fed's balance sheet and Bitcoin. His rule of thumb is that expansions in central bank reserves tend to inflate the frothiest parts of the market, crowding out value investing and encouraging momentum, FOMO, and trend-chasing. It’s not hard to imagine a scenario in which these segments come under pressure one by one – starting w/Bitcoin: "We’ve long argued that momentum-driven markets are prone to sawtooth-shaped pullbacks. A shift toward smaller central bank balance sheets would likely accelerate those reversals."  See Graph below.
• Bitcoin’s Average True Range(ATR) for the last 10 Trading days: $5,058 

Fig 1: Bitcoin spot Daily Chart

Source: MNI - Market News/Matt King/@Schuldensuehner