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Bitcoin bulls protect $17K as trader’s eyes catapult the price of Chinese BTC

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bitcoin (BTCIt held support at $17,000 on Dec 10 before a critical week of macro data.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

Printing CPI Will Make The Fed “Slow Down”

information from Cointelegraph Markets Pro And the TradingView BTC/USD followed as it traded sideways after the Wall Street close.

The pair seemed set for a quiet weekend, with all eyes focused on US inflation readings and policy updates from December 13th onwards.

With November’s Producer Price Index (PPI) trailing behind, the Consumer Price Index (CPI) results for the month took center stage.

As Cointelegraph mentionedexpectations remain that CPI will They show that the inflation rate in the United States continues to declinesparking renewed strength in risk assets, including cryptocurrencies.

“My personal expectation is that we will see CPI come in at 7.0-7.2%, core CPI at 5.9-6.1% and that we will again make a huge impact on the markets,” Michael Van de Poppe, Founder and CEO of Trading Eight, Wrote in a Twitter thread about it.

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Van de Poppe added that the Federal Reserve’s Federal Open Market Committee (FOMC) meeting on December 15 should respond in kind should that outcome result.

He predicted that “the FOMC stalls and slows down after this event.”

Meanwhile, macroeconomist and equity analyst James Choi said, produced List of stock market catalysts as the week closes, including emerging markets and the “never-ending crackdown” in the VIX Volatility Index.

“Peak inflation in the USA, a weaker US dollar, and the reopening of China provide some great investment opportunities. The Chinese real estate ETF $CHIR is up an astonishing 80% since November. Incredible.” added.

US Dollar Index (DXY) chart in the form of a one-day candle. Source: TradingView

China is making bitcoin bulls excited

Continuing in China, cryptocurrency analyst and trader TechDev has identified a potential leading indicator of Bitcoin’s strength in the form of the Chinese Ten-Year Bond Yield against the US Dollar Index (DXY).

Related: Price Analysis 12/9: BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, DOT, LTC, UNI

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Now heading higher, if history repeats itself, BTC/USD could benefit in kind He said In one of the many Twitter posts this week.

“Few signals correlate Bitcoin’s macro reversals as tightly as China’s 10-year yield,” further comments read:

“Local peaks in major $BTC$ motive tops. Local downtrend of CN10Y breaches with 3W RSI surpassing 50…Both of Bitcoin’s 3 biggest moves started.”
China 10-Year Bond Yield vs. BTC/USD Annotated Chart. Source: TechDev / Twitter

The views, ideas and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.