Matrixport: Bitcoin Forms Higher Lows, Bullish Signal Emerging



Matrixport released its daily chart analysis, noting that Bitcoin dropped more than 6% due to new speculation about a Bank of Japan rate hike triggering the unwinding of yen carry trades, as well as the liquidation of nearly $1 billion in leveraged positions. Crypto-related stocks, including MicroStrategy, fell as much as 12%. Weak market sentiment and roughly $3.5 billion in outflows from Bitcoin ETFs in November further intensified downward pressure.

After Chinese regulators issued warnings about illegal digital token activities, risk-off sentiment increased in the market, with Bitcoin briefly falling below $84,000. As the stock market stabilized and U.S. banks allowed advisors to recommend up to a 4% Bitcoin allocation for wealthy clients, Bitcoin rebounded above $90,000. Vanguard ultimately opened up Bitcoin investment channels to clients, further boosting market sentiment. From a technical perspective, Bitcoin has formed a “higher lows” pattern, which could be a bullish signal.
BTC-1.21%
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