- January 26, 2023
- Posted by: Tradingshot Articles
- Category: Cryptocurrency
This is not the first time we emphasized the strong correlation of Bitcoin (BTCUSD) with Yuan (USDCNY) and the Chinese Bond Yields (CN02Y and CN20Y). We made an analysis right in the aftermath of the FTX crash, indicating why those indicators have all aligned, paving the way for BTC’s new Bull Cycle.
As you see that happened and this time we incorporate the element of CN02Y/CN20Y. This shows that every time the ratio’s Lower Highs broke in the past, Bitcoin started the first phase of the Bull Cycle. For shorter or longer periods, this was achieved within a Channel Up (green). Right now we have started the new one.
Adding the fact that every time the USDCNY topped and dropped as aggressively as it has been doing since October 24, Bitcoin has started the most aggressive part of the Bull Cycle, the parabolic rally.
This mix is incredibly bullish for Bitcoin technically and it prompts to a mega rally next, the likes of which we may have not seen in the past. Do you agree? Feel free to let me know in the comments section below!