Bitcoin is up around 2% on Tuesday as US bond yields, the dollar and oil all fall. The report's author sees a possible rising channel, with an upside target that is probably $94K and a downside target in the low $70K area, though the thesis remains speculative.
Bitcoin is up around 2% on the day as bond yields, the dollar and oil all fall on Tuesday. The report calls that mix a benevolent setting for the $BTC price.
Bond yields may have topped
The 10-year US yield had surpassed the previous high set in June 2007. On the weekly chart, the yield looks as if it has topped for now and is possibly heading back to around 5%.
Two topping tail candles mark the peak, and the second resembles a shooting star candle. The next support level sits at 4.8%, followed by the top of the wedge at around 4.5% or lower.
An ascending channel for Bitcoin
Two channels that used to be distinct are lately combining, and a rising channel may be the best explanation for the price action. On the daily time frame, the next major step up, the third, may have just begun.
The daily Stochastic RSI indicators are possibly about to pass the key 20.00 level, where upside momentum begins. If the thesis plays out, the upside target is probably the $94K horizontal resistance level, but a breakdown from the channel would point to the low $70K area.
The thesis stays speculative
The report stresses that the channel idea is purely speculative at this point. Still, falling yields, a softening dollar and oil maybe hitting a peak make the setup very supportive.
On the weekly chart, the price could reach the $97,880 resistance level, which would confirm the bear market as officially over. A measured move out of the channel is roughly equivalent to an $11K corrective dip.
The Relative Strength Index looks healthier, and a 2.5-year trendline break to the upside suggests there may be more fuel in the tank.
Source: Crypto Daily™
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