Bitcoin Signals a Golden Cross

The failure of Bitcoin (BTC) to exceed $ 70,000 caused analysts to try to explain the situation. Some analysts worry that the continued rise in U.S. Treasury yields could lead to a prolonged decline.

But these concerns may be unnecessary for now as the path of least resistance for bitcoin remains on the higher side, consistent with the upcoming “golden cross” price pattern.

The yield on the U.S. 10-year bond broke through its 200-day simple moving average on Monday and hit a three-month high of 4.26 percent at press time, according to charting platform TradingView. Benchmark bond yield has increased by 60 basis points since the Fed reduced interest rates by 50 basis points on September 18.

An increase in the risk-free rate makes bonds more attractive, often attracting more investment from relatively riskier assets such as cryptocurrencies and technology stocks. Bitcoin’s rally ended on Monday at around $70,000, and prices have since fallen to $67,000.

Analyst The Great Martis, who often describes Bitcoin as the Nasdaq ETF, reports that he sees an extraordinary storm for risk assets as bond yields rise.

Some analysts view the rise in yields after the rate cut as a political mistake and liken the recent 50 basis point rate cut in a non-recessionist environment to the early easing of 1967. At the time, the central bank’s early reduction of interest rates caused a recession within a few years and caused inflation.

It is quite possible that the concerns stem from higher-than-expected September employment data and inflation data. This prevents the Fed from continuing to cut interest rates and puts upward pressure on yields.

BTC’s 50-day SMA has moved higher and it looks set to move above the 200-day SMA in the coming days. This confirms that the “golden cross” is approaching.

The pattern shows that short-term price momentum is outperforming the long-term, potentially developing into a bull run. However, it should not be forgotten that the indicator based on the moving average often leaves traders confused because it is a delayed signal.

However, there are cases where the Golden Cross heralds major bull runs.