Bitcoin Momentum Is Back at the Reading It Last Showed at the Top

A Treasury buyback expansion revived the dollar debasement trade, gold caught a bid, and Bitcoin ran with it in the largest single week rally in more than three years. Bitcoin weekly momentum has since climbed to its highest reading of the year, which confirms the strength of the move and simultaneously places the market at a reading last seen at the record high. Momentum extremes say less on their own than they do about location, and Bitcoin has arrived at this one directly beneath its first serious resistance zone. What the market does at that zone carries more weight than the reading itself.

Michael Boutros is a Senior Market Analyst at StoneX Media with more than 20 years trading foreign exchange, commodities and equity indices, and close to two decades spent reading markets through a structured multi time frame technical framework. That framework is what this theme runs on, because momentum extremes only carry meaning when they are measured against the weekly and daily structure they appear in, which is the lens he applies across the assets he covers.

Key Themes

• Bitcoin sits more than 40% above its yearly low after rising in seven of the last nine weeks.
• Weekly momentum reaches its highest level of the year, matching the reading present when the record high was registered.
• A Treasury buyback expansion revived the dollar debasement trade, lifting gold and Bitcoin together.