DeepSeek/Nvidia/AI Sell-Off Creates a Hidden Bitcoin Mining Opportunity—Here’s Where to Look!
While Ethereum....
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👇1-12) Although Bitcoin broke out of the wedge to the upside, Monday’s sell-off led to a retest of the upper wedge line (purple). While most investors remain focused on Bitcoin’s long-term trajectory, some are concerned about short-term price action. However, as long as Bitcoin holds above the short-term support level at $99,611 (dotted line), the bullish scenario remains intact. Additionally, the medium-term outlook stays positive as long as Bitcoin maintains support above $91,864.
Bitcoin - hourly chart
👇2-12) Bitcoin initially started January with strong momentum but encountered a mini inflation scare leading up to the CPI data release. Economists had raised their inflation expectations, and while the actual data came in higher, it matched forecasts, triggering a relief rally into the Trump inauguration.
👇3-12) However, market sentiment shifted as expectations for urgent crypto-focused executive orders were unmet, leading to disappointment. At the same time, concerns over AI capex profitability may have led to a repricing of the trade, while a hawkish Fed and the prospect of higher interest rates further pressured risk assets, including Bitcoin.
👇4-12) With uncertainty surrounding U.S. tariffs, the Fed may soften its hawkish December stance, especially as rate cut expectations have already shifted since the December projections. This creates the potential for a slightly dovish surprise in this week’s Fed meeting (which could benefit Bitcoin). Additionally, the 10-year bond yield is currently at the same level as it was during the December FOMC meeting and has declined 30 basis points since the January CPI release, suggesting that the hawkish narrative has lost momentum.
Ethereum - failed to break above the triangle - trading below $3,184 stop
