Today’s breaking news in the crypto world centers around the US government’s involvement in regulating Bitcoin (BTC). With recent developments in China regarding crypto, market participants are taking a defensive stance, causing a delay in the expected massive price upswing.

Key takeaways:

The US government’s regulation of crypto, including the ban on crypto mining in China, is causing a stir in the market and potentially impacting BTC’s recovery.

Bullish Cross for BTC Suggests Potential Bull Run Ahead

According to analyst Coinvo Trading, a bullish cross has emerged on the weekly chart for Bitcoin, involving the Stochastic RSI of the US10Y and CN10Y against the cryptocurrency. This signal, which has only appeared four times in the past, has historically preceded significant price rallies.

In fact, the last time this cross occurred was in October 2020, just before Bitcoin went on a 600% rally to reach its all-time high of $69,000 in 2021.

Fellow analyst Matthew Hyland also believes that a breakout for BTC may be on the horizon, citing the performance of the US dollar strength index (DXY). He predicts that once the DXY falls below 96, as it did in 2017 and 2022, the BTC/USD pair will see a surge in price.

Meanwhile, gold prices have hit a record high above $5,000, while Bitcoin remains rangebound. This divergence between the two assets has raised concerns, but analysts at Swan reassure investors that this is a normal pattern. Typically, gold moves first and Bitcoin follows with a “violent” breakout after months of sideways movement.

The Fragile State of the Bitcoin Market

The current state of the Bitcoin market is uncertain due to a lack of buyers, making a sustained recovery above key levels challenging.

The spot cumulative volume delta (CVD) metric for Bitcoin has recently turned negative, indicating a shift towards selling dominance. This metric dropped sharply to -$194.2 million last week, a significant decrease from the previous week’s $54.2 million. This suggests that traders are becoming more risk-averse and losing confidence in potential price increases in the near future, according to Glassnode’s Weekly Market Impulse report.

In addition, the weekly net flows for spot Bitcoin ETFs have also turned negative, going from a $1.6 billion inflow to a $1.7 billion outflow. This further supports the idea of decreasing institutional demand and increasing downward pressure on prices.

As reported by Cointelegraph, the outlook for Bitcoin may involve a prolonged period of consolidation, as there are multiple factors contributing to this uncertain market state. These include strong resistance levels, selling pressure from spot BTC ETFs, and growing economic uncertainty.

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