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Chinese bullish signal for Bitcoin; Does the return start at $17,000?

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Some analysts say that the reopening of businesses in China after the lifting of some of the long-term restrictions that were imposed due to the corona epidemic in the country, could lead to a rapid change in the state of the country’s financial markets. According to experts, this possible change in the Chinese market can harm the dollar and benefit Bitcoin.

To Report Cointelegraph, on December 13 and 14 (December 22 and 23), the inflation rate of the previous month and the new bank interest rate in the United States will be announced. For this reason, Bitcoin is expected to experience a relatively calm market until then.

Most experts expect the US point-to-point inflation rate to decline in November, as in previous months.

Michael van de Poppe (Michaël van de Poppe), founder and CEO of trading platform Eight, says:

Personally, I expect the inflation rate to be 7 to 7.2 percent and the core inflation rate to be 5.9 to 6.1 percent in this period and once again have a big impact on the market.

He said that the Central Bank of America will announce the new bank interest rate on December 14 (December 23) according to the country’s inflation statistics. That is, if the inflation rate has decreased again, the central bank will lower the rate of interest rate increase.

James Choi, an economist and stock market analyst, has recently mentioned in a tweet the triggers that can cause the global stock market to jump, and in his list, a factor titled “emerging market growth due to the decline in the dollar price” can also be seen.

He says about this:

Rising inflation in the US leads to the weakening of the dollar and the reopening of businesses in China. [پس از پایان بخشی از سخت‌گیری‌های مربوط به کرونا] It provides good opportunities for investment in this country. The stock value of the China Real Estate Exchange Fund has also grown by 80% since the beginning of November, which is incredible.

Chinese bullish signal for Bitcoin;  Does the return start at $17,000?
One-day view of the US dollar index.

TechDev, a digital currency analyst, has also compared the performance of Bitcoin with the “Chinese 10-year bond against the US dollar” index, referring to the expected economic developments in China.

As can be seen from the image comparison above, if history were to repeat itself, the recent jump in China’s 10-year bond yield against the dollar index could end up in Bitcoin’s favor.

Tak Do said:

Few signals are as closely correlated with major Bitcoin movements as China’s 10-year bond yield. Bitcoin’s all-time highs coincide with the all-time highs of China’s 10-year bond yields. The exit of this index from the downward trend happened every time when the 3-week relative strength index (RSI) crossed the middle axis (level 50), and all 3 recent big upward movements of Bitcoin also happened exactly at the same time.

Chinese bullish signal for Bitcoin;  Does the return start at $17,000?
One-by-one analysis of the 3-week view of China’s 10-year bond yield versus the price of Bitcoin.

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