Despite the barrage of bad news and developments in the crypto industry, Bitcoin managed to stabilize and reach a new important holding ground at $17K. This critical support level was crucial for bulls to hold on to. The psychological effect of losing it would have been devastating especially ending a relatively calm first weekend day trading below $17K.
Prices were moving according to forecasts
At the beginning of the trading day, BTC was close to hitting the $17K support line multiple times with the lowest dip being close to $17,050. There was a moment when many retail traders were ready to give up on holding and forfeit some of their long positions. However, throughout the day prices were held above the line, and the hugely important line of defense of held successfully.
The global Bitcoin market is preparing for a rally with recent analysts noticing that the 10-year yield on Chinese bond numbers is looking good. The correlation between this metric and the price of BTC is something that many technical analysts have been using as a way to build a foundation for their analysis. Many times, they were right about upcoming changes.
The current equilibrium of BTC and falling trading volumes show that the market is ready for the next bull run which may be fueled in part by Chinese bond yields. The US dollar index may underperform too forcing investors to start hedging against it by putting their capital in cryptocurrencies and other alternative assets.
Multiple bull runs started just like this one
Three last bull runs that led to a new ATH were all connected to the movement of CN10Y which is now in a position where the 3-week RSI is over 50 indicating optimal conditions for a recent rally to start. We may not see a dramatic bull trend due to general market conditions and trouble in the global economy, but a recovery to the previous support level is more than possible.
Watching other assets during the bull run is quite important. Make sure to take a closer look at all cryptocurrencies.
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