With Bitcoin continuing to captivate global attention, a growing sense of anticipation surrounds its potential for a new bullish journey. In our Bitcoin price prediction, we will explore the influential factors that could ignite the next bull market, including the rise in US Treasury yields and sustained institutional interest.

Recently, Bitcoin (BTC), the world’s largest cryptocurrency, has reached a significant milestone, reaching $31,000 and its highest point in a year. This surge brings optimism to investors and holds promising prospects for the entire crypto industry.

Although Bitcoin is currently in a consolidation phase, hovering around the $30,000 level, it has the potential for further upward movement if it can maintain its position above this key support level.

Despite experiencing a slight 1.6% drop in the past 24 hours, Bitcoin continues to trade above $30,000, showcasing impressive weekly gains of over 15%.

Impact of US Treasury Bonds on Bitcoin

The price of Bitcoin can be influenced by the demand for United States government bonds, also known as Treasurys. The yield of these bonds, determined by factors like inflation expectations and risk, plays a crucial role in their attractiveness to investors. Higher demand for Treasurys leads to lower yields as investors seek the safety and protection they offer against inflation.

Correlation

However, it is interesting that the traditional inverse correlation between Bitcoin and Treasury yields has been disrupted recently. This is likely because investors purchase government bonds for their perceived security, even if the yields are lower than their inflation expectations.

This divergence in correlation suggests that factors beyond yield currently influence investor behavior in the cryptocurrency market.

It is important to consider that the demand for Treasurys and the stock market’s performance can impact the price of cryptocurrencies. In times of uncertainty or market turbulence, investors may seek assets that provide stability and serve as a hedge against potential risks.

Therefore, fluctuations in the demand for Treasurys and the overall sentiment in the stock market can influence the price movements of cryptocurrencies like Bitcoin.

Bitcoin Price Prediction

On the daily chart, BTC/USD is encountering significant resistance near the $31,000 mark, which is reinforced by a double-top pattern. The presence of doji and spinning top candles, along with this resistance level, suggests a weakening bullish sentiment and exhaustion among buyers.

As a result, we can expect a minor correction in Bitcoin’s price. It’s important to note that immediate support can be found at around $29,600.

A break below this support level may lead to further downside movement, targeting the key support at $28,250, which coincides with the 50-day exponential moving average. If the price drops below $28,200, the subsequent support will likely be around $26,750.

Bitcoin Price Chart
Bitcoin Price Chart – Source: Tradingview.com

The relative strength index (RSI) and moving average convergence divergence (MACD) indicators are currently in the neutral zone, indicating that Bitcoin is neither overbought nor oversold. This reinforces the potential for a corrective move in the near future.

Conversely, if Bitcoin successfully breaks above the $31,000 level, the next target to watch is approximately $32,500. If the momentum continues, the subsequent target could be around $34,000.

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