In the last few months, the price of bitcoin has been under pressure as it had gone to a technical bear market this year after falling from its highest level to 20%.
Bitcoin (BTC) and other altcoins have important catalysts that can push it more in the next few months. It was trading at $ 90,000 up to 15% from the lowest level of this month.
First, the yield of American bonds has retreated from its highest level this year. The benchmark was reduced from 4.8% to 4.24% in January in January. 30 years and five years of yields have also slipped in the last few weeks.
Falling bond yields are an indication that the market estimates that the Federal Reserve will cut higher interest rate this year. Economists are pricing in three cuts after the US issues a series of weak economic figures. Donald Trump has fallen consumer and commercial beliefs after adding tariffs to major American business partners.
The labor market is also softened, the unemployment rate is growing up to 4.1% in February and the nonform parole is growing up to 151,000, which is less than the expected 159,000.
US dollar index and bond yield has crashed
Second, the US dollar index or DXY has gone into a freefol. It has fallen in the last five days, with the lowest level of its lowest level to a low of $ 103.78 since November. This year is about 7% less than its highest level. The price of bitcoin is often well when the yield of US dollars and bonds is slipping as it increases the possibilities of fed interest rate cut.
In addition, the supply of global money is expected to increase as governments increase their expenses. Germany is aiming to spend billions of dollars on its defense, while China has announced a plan to promote expenditure. The chart below shows that bitcoin has a close relationship with the global M2 money supply.
Bitcoin price technical analysis
The daily chart shows that the BTC price has been stable in the last few days, which has been reduced from $ 78,000 to $ 90,000 last week.
Bitcoin is built above the ascending trendline, which has added the lowest swings since August of the previous year. It has also gone above the weak, stop and reverse points of 50-day moving averages and Murray Math lines.
Therefore, bitcoin needs to be strong at $ 93,750, axis and reverse levels to confirm the rapid breakout. This price coincides with the highest level this week. One step above that level will point to more profit, possibly up to $ 100,000.
