Overview

Bitcoin’s trajectory towards a $120,000 valuation is gaining strength as prices break above the 50-day Simple Moving Average (SMA). However, analysts caution that several factors could disrupt this upward trend.

Key Insights

• Bitcoin is approaching a bull fatigue zone as it hovers around $115,000.
• The dollar index may have factored in anticipated Federal Reserve rate cuts.
• Any decline in the 10-year Treasury yield could face limitations.

Current Analysis

Bitcoin has witnessed a boost, highlighted by a recent breakout that has opened avenues for a potential rally. However, caution is advised due to several signs of fatigue in the market.

Price Trends

Prices have surpassed the widely acknowledged 50-day SMA, a critical indicator of market momentum. Yet, the market may be drawing in investors too quickly, potentially leading to a retracement.

Dollar Influence

With traders anticipating rate cuts, the dollar index remains relatively stable, casting doubts on its weakening and impacting assets like Bitcoin.

Long-term Observations

Expectations surrounding declining treasury yields may not lead to the anticipated influx of investment into riskier assets, as historical trends show a long-standing bullish shift in yields.

For more in-depth insights, read the full analysis on CoinDesk.
BTC Monthly Chart