Bitcoin could reach anywhere between $55,000 and $56,000 in the coming sessions, says Jonny Moe.
On Monday, the independent analyst tweeted a technical outlook that presented BTC/USD inside a bullish continuation structure known as the Ascending Triangle. In doing so, the pair traded upwards while maintaining support above a rising trendline. Meanwhile, a horizontal resistance trendline capped the pair from extending its upside bias.
An Ascending Triangle pattern typically leads to a bullish breakout. Mr. Moe envisioned a similar scenario for Bitcoin as he observed the cryptocurrency’s attempt to break above the horizontal resistance area above $51,500 during the Monday session.
“This is looking pretty good for the upside break,” the analyst tweeted, pointing at the chart above. “Barring anything crazy happening, I’ll be looking to get risk off again in the $55-$56k range.”
Bitcoin and US Bond Yields
The statement appeared as Bitcoin attempted to pare its intraday losses following its plunge to below $50,000 during the late Asia session. Traders sold the cryptocurrency following its overnight push towards $52,000 on profit-taking sentiment.
Nevertheless, the Bitcoin sell-off diminished as the US Treasury yields posted corrective declines ahead of the US session. The cryptocurrency was lately reacting inversely to the moves in the government debt interest rates. Investors sold off risk-off and overvalued assets while anticipating a faster economic recovery in the US.
As a result, their capital started flowing into cash or sectors that had suffered during the coronavirus pandemic-led lockdown.
Bitcoin, which rose by more than 1,200 percent to above $58,000 from its mid-March nadir, fell by more than 21 percent in the week ending on February 28. The same session saw a major spike in the US 10-year Treasury note, rising to 1.525 percent. It was 0.917 percent at the beginning of this year.
BTC/USD recovered a portion of its weekly loss in the next seven-day session. As the Treasury yields rose but limited their gains, Bitcoin wobbled through profits and losses only to end the week with a rally. The cryptocurrency surged 10 percent during the weekend as the US Senate passed President Joe Biden’s $1.9 trillion stimulus package.
The upside sentiment carried through the beginning of the new week—today. It received further tailwinds as multiple mainstream institutions announced its expansion into the Bitcoin sector.
It started with Meitu. The Chinese photo-editing app announced on Sunday that it has bought some $40 million worth of cryptocurrency. That includes about $18 million worth of bitcoin and more than $22 million worth of Ethereum.
Later, Norwegian holding company Aker ASA announced that it has launched a new wing called Seetee AS. The firm allocated 1,170 BTC for the new venture’s treasury, adding that it would be a holder of the $58 million worth of cryptocurrency.
Entering the US session, the Bitcoin market’s recovery sentiment picked momentum as PayPal acquired Curv, a provider of cloud-based infrastructure for cryptocurrency security. That marked the payment giant’s latest push into the Bitcoin sector, almost five months after it announced that it would offer crypto buying, selling, and custodianship services.
The US bond yields rose today, but it failed to push Bitcoin prices lower thanks to its ongoing adoption spree among institutions.