Bitcoin Attempts Uptrend as US Bond Yields Retreat From 24-Year Highs

Bitcoin Stabilizes Amid Bond Yield Dip

Bitcoin is attempting to establish a local uptrend as US bond yields pulled back from their highest levels in 24 years on Thursday. The 10-year Treasury yield, a benchmark for borrowing costs, saw a notable decline around the Wall Street open, offering some relief to risk assets.

Yields and BTC Correlation

Rising bond yields have exerted downward pressure on Bitcoin throughout October, as investors favored the relative safety of fixed income amid economic uncertainty. The inverse relationship stems from the opportunity cost of holding non-yielding assets like BTC when yields on bonds increase. A retreat in yields, therefore, can remove some of that headwind.

Technical Levels in Focus

Bitcoin has been working to maintain a pattern of 'higher lows,' a bullish technical signal. The price action around the $34,000 level will be critical in determining whether this trend can be sustained. Further declines in US bond yields could support a continued recovery in BTC, while renewed increases could reignite selling pressure.

Onchain Data Remains Key

Despite the positive correlation with bond yields, onchain data will remain a crucial factor. Monitoring metrics like exchange inflows/outflows, active addresses, and funding rates will provide insights into the strength of the current uptrend and potential areas of resistance.

Source: Cointelegraph