Bitcoin held above $83,000 even as US stocks saw a red day and the 10-year Treasury yield closed in on a 19-year high. Technical charts show the coin funneling into a descending triangle, with a breakout in either direction likely soon.
Treasury yield closes in on a multi-year high
The US 10-year Treasury yield could reach the 5.29% level as soon as Tuesday or Wednesday, a mark not touched in 19 years. On the monthly chart, the Stochastic RSI indicators have reached the top of their range alongside a double top, technical signals that could point toward a pullback to a descending trendline or the top of a longer-term triangle pattern.
Bitcoin funnels into a descending triangle
Bitcoin's price is being funneled into the last third of a descending triangle pattern, and a breakout in either direction is probably going to happen soon. A move down would find support at the top of the previous parallel channel. A move up would first meet the channel's midpoint before facing resistance at $86,700.
Because a descending triangle is generally bearish, the eventual direction is still unclear. Therefore, if the 10-year yield keeps climbing toward 5.29%, stocks, gold, and risk assets including Bitcoin are probably going to suffer, making trades in this environment more unpredictable than usual.
Bitcoin nears a breakdown-or-breakout decision point
On the daily chart, the triangle pattern looks more apt than a parallel channel, given the lack of touch points along the channel's top. As a result, Bitcoin sits close to a decision point between a collapse through strong support or a breakout back toward $86,700.
The Stochastic RSI on this timeframe still has a way to go to fully reset, even as lower-timeframe indicators trend back up. The RSI is holding above a descending trendline; if that trendline gives way, it could signal that price action is also going to fall.
Weekly candle confirms $83,000 as new support
The weekly chart shows the current candle has come back down to test and confirm the previous resistance, which becomes new support as long as Bitcoin holds above it by the end of the week. Whether bond yields come back down will likely decide how much room risk assets have to rise.
Source: Crypto Daily™
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