After the employment data from the USA, the US stock markets and bitcoin continues to be receptive.
The sharp rise in the US 10-years had raised the expectation of a negative opening in the US stock markets, but the fears did not happen for now.
Because it is considered that the 4% pullback in Nasdaq yesterday was effective in the formation of this picture and the indices did not sell more because it was in the oversold region.
Downtrend Breakdown
Positive and horizontal course in the US stock markets in bitcoin It caused the stuck price to explode upwards.
Because we stated a few days ago that this move is necessary to squeeze the accumulated short positions.
Technically speaking, we observe that the downtrend from $69,000 has been broken.
Maintaining this trend break may increase risk appetite in Bitcoin and altcoins in the short term. Therefore, we may see relief rallies in the next few days.
But it’s too early to go fully into bull mode. Because falling trend breaks do not mean that the price will not decrease again or maintain a certain level.
The fact that there is no change in macroeconomic expectations in general shows that we should approach the rises with caution.
It would be premature to say the trend has returned until we see a high high-high low in the daily.
It is worth remembering that a similar picture is seen in the decline after the 2017 bull.
After the decline from $20,000 in 2017, we observe that the downward trend at $10,000 was broken, but a 50% downtrend started after 6 days of rising.
For this reason, new costings with a trend breakdown approach may not produce the expected results.
*Not Investment Advice.