While Bitcoin’s (BTC) price remains below $30,000, a widely followed crypto analyst has shared a bullish outlook for the leading crypto asset by market capitalization.
Pseudonymous technical analyst TechDev who referenced the Chinese 10-year bonds (CN10Y) and the US dollar index (DXY) spotted on a chart he recently shared liquidity signals which began each of Bitcoin’s last 3 largest rallies.
According to him, this flashing technical indicator hints at a possible parabolic advance that could see bitcoin price surpassing $69,000 to hit a new all-time high.
Per the CN10Y/ DXY chart he tweeted on Tuesday, TechDev implied that BTC price action often follows global cycles of liquidity. Referring to the CN10Y/ DXY one-week chart he wrote, “The yellow arrows aren’t halving dates. They’re the liquidity signals which preceded each parabolic advance to new highs in bitcoin.”
The popular analyst noted that a breakout of CN10Y/DXY over its 60-week moving average (MA) is the specific liquidity signal that could trigger the highly anticipated Bitcoin bull run.
“Break of CN10Y/DXY over its 60W MA”, he said “Has correlated with China’s credit impulse and historically led the ~3.5 global liquidity cycle.” “This ratio appears a rotated version of BTC’s chart,” he added.
On the other hand, a break below the 60-week moving average would invalidate the bullish expectation in BTC price action in the coming weeks or months. Accordingly, the analyst said he’s keeping a close watch on the CN10Y/DXY chart to share further updates.
Meanwhile, the latest rate increase by the Federal Reserve had no negative impact on Bitcoin as the asset’s price posts a 2.12% increase in the last 24 hours, changing hands at $29,100 at the time of writing.