Is Bitcoins Next Mega Rally at Risk of Being Derailed by Treasury Yields The Golden Cross Looms
Bitcoin (BTC) is once again poised for a critical price shift, but is this the opportune moment for a bull market? There are concerns among analysts that the rise in U.S. Treasury yields could impede Bitcoin’s growth. As the cryptocurrency approaches a “golden cross,” a strong signal for a bullish trend, could Bitcoin be preparing for its next massive rally?
Advertisement
There are worries that Bitcoin’s recent struggle to surpass the $70,000 mark may be due to the increasing U.S. Treasury yields, which could potentially trigger a significant price decline. The 10-year Treasury yield has reached a three-month high of 4.26%, causing concern among those who believe that higher yields make bonds more appealing and may divert investments away from riskier assets like Bitcoin.
However, TS Lombard, a research firm, argues that the fear surrounding the rising yields may be exaggerated. They state that the increase in yields aligns with past non-recessionary rate cuts by the Federal Reserve and does not indicate a bearish outlook for risk assets such as Bitcoin.
Amidst these concerns, Bitcoin’s 50-day Simple Moving Average (SMA) is about to surpass its 200-day SMA, creating the highly anticipated “golden cross.” This pattern often signifies that short-term momentum is gaining strength, which could potentially lead to a bull market.
Although the Golden Cross is occasionally criticized for being a lagging indicator, historical data shows that it has accurately predicted significant bull markets in the past. For example, traders who held Bitcoin after previous golden crosses experienced substantial returns, with a surge to over $73,000 following a similar pattern in late 2023.
What does the future hold for Bitcoin? Despite concerns about Treasury yields, the golden cross suggests that the cryptocurrency’s price may soon experience an upward trajectory. With past patterns supporting a bullish outlook, it appears that the market may be preparing for a significant upward movement, regardless of the economic climate.