QCP Capital: It is expected that during the closure of the US market today, Bitcoin will consolidate in the range of 92,000-95,000 USD

The latest analysis from QCP Capital indicates that Bitcoin rebounded to $95,200 last night after successfully testing the key support level of $92,500. However, with news emerging that the U.S. government plans to sell seized Silk Road Bitcoins, the outlook for Bitcoin turned bearish in this morning's Asian trading session.

Cryptocurrency prices continue to be affected by macroeconomic headwinds. The minutes from last night's Federal Reserve meeting showed a more hawkish stance. The Fed stated that due to rising inflation risks, it will slow down its pace of interest rate cuts. Yesterday's ADP employment survey also added to macro uncertainty, showing a slowdown in private sector hiring and wage growth. This contrasts sharply with Tuesday's JOLTS job openings data which depicted a robust job market.

In terms of options markets, all term curves are steepening; 3-6 month spreads widened by 1.5 volatility points while 6-12 month spreads rose above one volatility point. Trading desks continue to observe near-term volatility under pressure; at-the-money options expiring on January 17 fell three volatility points compared to last night.

QCP expects Bitcoin will consolidate within the range of $92,000-$95,000 during today’s US market holiday period. If it falls below $92,000 it may further explore down towards the round number level of $90,000.