Bitcoin (BTC) continues to trade in a narrow range early Tuesday as it finds itself caught between key moving averages amid increasing volatility in the U.S. bond market and sharp declines in Chinese equity markets.

• BTC is currently above $62,000, with the Bollinger bandwidth indicator declining to levels that precede previous price drops.
• The MOVE index, which reflects expected volatility in U.S. Treasury notes, surged 24% on Monday, indicating heightened financial uncertainty.

Chinese Stock Market Declines

The Shanghai Composite Index in China fell by 4.6%, ending a streak of ten consecutive days of gains, largely due to a lack of anticipated fiscal stimulus from the government.

This downturn in Chinese stocks may result in a reversal of capital flow towards other Asian markets and cryptocurrencies, potentially supporting their prices in the near term.