• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
Bitcoinist.com
No Result
View All Result
Bitcoin, cryptocurrency, BTCUSD, BTCUSDT
Nexo

Bitcoin Weekly Outlook: T-Bonds Threaten Crucial BTC/USD Support

Yashu Gola by Yashu Gola
1 year ago
in Bitcoin
0
Advertisement

Key Bitcoin Takeaways:

  • Bitcoin fell wildly last week as the US dollar capitalized on rising Treasury bond yields.
  • Nonetheless, dip-buying sentiment near a technical support level kept the cryptocurrency’s bullish bias intact.
  • A further rise in yields could have bears test the support area for a breakdown.

The BTC/USD exchange rate logged a sharp rebound and erased a major portion of its previous week’s losses on Monday. It was able to close the Sunday session above $45,000, a level that falls inside the support area that has capped Bitcoin’s bearish attempts from turning a full-fledged sell-offs.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Nevertheless, the cryptocurrency fell by up to 26.30 percent after settling its record high above $58,000 on February 21. There was a clear indication of profit-taking across all the riskier markets, including technology stocks. The carry trades themselves came in the wake of a late-week US dollar rally, buoyed by a dramatic rise in the Treasury yields so far this year.

US 10-year Treasury note, US10Y, bond yield, bitcoin
US 10-year Treasury note yield corrected lower at the end of last week. Source: US10Y on TradingView.com

The interest rate on the benchmark 10-year note jumped from 1 percent at the beginning of 2021 to over 1.6 percent ahead of February close, its highest level in a year. Its uptick reduced the appeal of Bitcoin, a non-yielding asset, as it already traded at overvalued levels.

That led to a massive downside correction, with the price dipping to as low as $43,016 in the previous session. However, a correction in 10-year note yields at the end of last week and the beginning of the new one coincided with an uptick in the Bitcoin markets.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

Technical Support Held

The inverse moves between the 10-year note yield and Bitcoin this week do not guarantee a negative correlation. More so, they have to do with a strong buying sentiment in the Bitcoin markets inside a provable support area highlighted in the chart below.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT
Bitcoin regains the support area that last sent its prices to record highs. Source: BTCUSD on TradingView.com

So far, the range has capped bears from extending their sell-off bias. Many analysts see it as a validation that Bitcoin’s ongoing correction won’t last. Instead, bulls will take over the market and push the prices back to their recent record levels.

“Even in this correction, the outflow of Bitcoin from exchanges is still heavy,” argued Michaël van de Poppe, an independent market analyst. “This means that people are buying their Bitcoin to hold in cold storage as an investment vehicle and those are not selling. We’re still early. In a healthy correction.”

Bitcoin This Week

Santiment notes that Bitcoin’s 30-day correlation with the US stock market has grown stronger lately. At the core of their copycat trends lies—again—the rising bond yields.

The first big impetus comes from the improving vaccine rollout across the world, reigniting hopes of faster-than-expected economic recovery once life goes back to normal. Then, the Democrats took control of the US Senate, making it possible for president Joe Biden to pass his ambitious $1.9tn stimulus that would further balm the economy.

It has pushed the inflation expectations higher, causing a sell-off in the bond markets in recent weeks. It also comes as investors fear that the Federal Reserve would tighten their monetary policies more quickly than previously reported. The central bank chairman Jerome Powell has indicated that his office would keep rates lower until they push the inflation above 2 percent.

Underscoring this tense climate is recent wild swings in the tech stock and Bitcoin markets and growth in shares that lost the most during the pandemic. Santiment notes:

“As we’ve noted in previous data studies, BTC rallies tend to be the most prominent when [the cryptocurrency’s correlation with the US stocks] turns negative, as it did in December 2020.”

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT
Bitcoin fluctuates in line with the S&P 500. Source: Santiment

Erratically, a further rise in US bond yields could push the Bitcoin prices lower. Should it happen, the pressure to maintain the upside bias would fall on the technical support area, as mentioned above. Else, the price risks fall to $40,000 or lower.

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Yashu Gola

Yashu Gola

Globetrotter Yashu Gola has been working as a financial/crypto market journalist since 2013. He is an information technology graduate, a cryptography junkie, a filmmaking enthusiast, and an avid reader of Jon Erickson, Agatha Christie, JK Rowling, and Isaac Asimov.

Related Posts

Bitcoin

Bitcoin Legalization Pushed By Mexican Senator, Despite Central Bank’s Opposition

18 hours ago
Oslo Freedom Forum, Lyn Alden screenshot

3 Lessons From The Oslo Freedom Forum: BTC Is Different – Neigut, Alden, Feinstein

1 day ago
Bitcoin

Bitcoin Funding Rate Turns Deep Red, Short Squeeze Soon?

1 day ago
El Salvador

El Salvador, Unfazed By The Bear Market, Buys 80 Bitcoin – Will Others Do The Same?

3 days ago
Bitcoin Trading Volume Sinks Down Almost 60% In 9 Days

Bitcoin Trading Volume Sinks Down Almost 60% In 9 Days

3 days ago
North Korean Hackers

North Korean Hackers Suspected Of Perpetrating $100 Million Harmony Attack

4 days ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2022 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.