Bitcoin Nears Breakout as US 10-Year Yield Peaks
The U.S. 10-year Treasury yield reached a 24-year high on Monday before retreating slightly. Despite this, Bitcoin (BTC) maintained its position above the $85,000 support level, remaining just $1,000 away from a potential breakout beyond the upper trendline of a parallel channel.
A closer look at the 4-hour chart reveals a bullish setup. Bitcoin's price is situated in the upper half of the parallel channel, with a rising trendline guiding it toward the top, forming an ascending triangle. This pattern suggests a strong possibility of a breakout, potentially occurring by the end of the week.
Should Bitcoin break down below the ascending trendline, there is support at $84,800 and further down at the bottom of the channel. However, the focus remains on the upside potential. The daily chart indicates that a breakout could push Bitcoin past $89,250, with stronger resistance at $94,300 and a definitive bear market end at $97,880.
The Stochastic RSI and Relative Strength Index (RSI) indicators on the daily chart support the likelihood of a breakout. Additionally, the U.S. 10-year bond yield may be peaking, and oil prices could decline, potentially creating a more favorable environment for Bitcoin in the coming months.