Bitcoin Bullish Despite Bond Market Pressures
Bitcoin (BTC) showed strong bullish signals on Tuesday morning, despite trading within a tight range. The BTC/USD pair was valued at 85,747, just below the recent high of 87,310. The cryptocurrency's weakness was attributed to rising US government bond yields, with the ten-year yield hitting 5.3%, and the five-year and 30-year yields at 5.05% and 5.6%, respectively. As a non-yielding asset, Bitcoin often sees reduced demand when bond yields rise.
Despite the bond market turbulence, Bitcoin has seen increased demand from both institutional and retail investors in the US. Spot Bitcoin ETFs have accumulated over $292 million in assets this month, continuing an upward trend that began in July. The total assets in these ETFs have now surpassed $6.5 billion. Another potential boost for Bitcoin comes from the possibility that the Federal Reserve may hold interest rates steady this month, following softer-than-expected inflation data and a weaker jobs report.
Technical analysis of the daily chart indicates a bullish outlook for Bitcoin. The BTC/USD pair rebounded from a low of 57,664 in July to a high of 87,310, breaking through the key resistance level of 82,758. The pair has held above the 50-day Exponential Moving Average (EMA) and the Supertrend indicator, suggesting that bulls are in control. The next potential target for Bitcoin is the resistance level of 90,000, which would be confirmed if it moves above 87,309. A drop below the support level of 84,000 would invalidate the bullish outlook.