The United States 10-year Treasury yields have reached their highest level since 2007, causing concerns about a potential recession in the market. The spread between the 2-year and 10-year Treasury yields has significantly narrowed, which has led some experts to issue warnings about the state of the economy. Jeffrey Gundlach, CEO of DoubleLine Capital, believes that this narrowing spread is a clear recession warning. Arthur Hayes, former CEO of BitMEX, has also cautioned that the government may have to print money to save the bond market if a faster bear steepener occurs. This situation could potentially trigger a cryptocurrency bull market.
In the midst of this uncertain macro environment, institutional investors have begun to show an increased interest in cryptocurrencies. CoinShares’ latest report shows inflows of $21 million into digital asset investment products, marking the first inflows in six weeks. With this growing acceptance of cryptocurrencies, it’s important to analyze the charts to predict future movements.
Bitcoin has seen a rise, with the potential to clear overhead resistance at $28,143. A close above this level could complete a short-term double bottom pattern, signaling a target objective of $31,486. However, if the price turns down from this resistance, it could plummet below the 20-day exponential moving average and continue to consolidate between $24,800 and $28,143.
Ether has faced resistance at $1,746, indicating bears are guarding this level. If the price turns up from the current level, the bulls will attempt to overcome this obstacle. A breakout could complete a double bottom pattern with a target objective of $1,961. If the price continues to decrease, it may remain range-bound between $1,531 and $1,746.
BNB experienced a failed breakout above $220, leading to a rush to exit by traders. The failure to sustain the price above the 20-day exponential moving average is negative, pointing to a possible decline to the uptrend line. However, if the price rebounds off this level, the bulls will aim to push the pair above $220.
XRP has exceeded the symmetrical triangle pattern, with the bulls attempting to surmount the overhead resistance at $0.56. A successful push could signal the start of a new uptrend, with a target objective of $0.66. Conversely, if the price turns down from $0.56, the pair may remain range-bound between $0.56 and $0.41.
Solana has formed a potential inverse head and shoulders pattern within a large range between $14 and $27.12. If the price turns up and breaks above the neckline, the pair could rally to $27.12 and eventually reach the pattern target of $32.81. However, if the price falls below the 20-day EMA, it could suggest a bearish sentiment.
Cardano turned down from $0.27 and reached the 20-day EMA. If the price rebounds from this level, it could indicate a change in sentiment from selling on rallies to buying on dips. The bulls will aim to push the price above $0.27, leading to an up-move to $0.29 and later to $0.32. Bears will need to drag the price below the 20-day EMA to prevent a rally, possibly leading to another descent to the vital support at $0.24.
Dogecoin has reached a formidable support level at $0.06, with the potential for a slump to the next major support at $0.055. The RSI has formed a bullish divergence, indicating weakening by the bears and a possible advantage for buyers. However, it is best to wait for the price to close above the 50-day SMA or below $0.06 before making any directional bets.
These analyses provide insights into the potential movements of various cryptocurrencies based on current market conditions. It is important to consider all factors and indicators before making any investment decisions.
