Bitcoin bulls protect $17,000 as trader eyes China’s BTC price catalyst
Bitcoin (BTC) maintained $17,000 support on December 10 ahead of a critical week of macro data.
CPI printing will prompt Fed to ‘slow down’
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it traded sideways after the close on Wall Street.
The pair looked set for a quiet weekend, with all eyes focused on US inflation readings and policy updates from December 13 onwards.
With the producer price index (PPI) November printout behind it, the month’s results for the consumer price index (CPI) took center stage.
As Cointelegraph reported, expectations remain that the CPI will show that inflation in the US continues to ease, sparking renewed strength in risk assets, including crypto.
“My personal expectations are that we will see CPI come in at 7.0-7.2%, core CPI at 5.9-6.1% and that we will have a big impact on the markets again,” Michaël van de Poppe , founder and CEO of trading firm Eight, wrote in a Twitter thread on the subject.
Van de Poppe added that the Federal Reserve’s Federal Open Market Committee (FOMC) meeting on December 15 should respond in kind should this be the outcome.
“FOMC to pause and slow down after this event,” he predicted.
Macroeconomist and equity analyst James Choi, meanwhile, produced one list of equity market catalysts as the week ended, these included emerging markets and “infinite suppression” in the VIX volatility index.
“Peak US inflation, weaker USD, reopening of China provide some good investment opportunities. Chinese Real Estate ETF $CHIR up staggering 80% since November. Amazing,” he added.
China Gets Bitcoin Bulls Excited
Continuing on China, crypto analyst and trader TechDev outlined a potential leading indicator of Bitcoin strength in the form of the Chinese 10-year bond yield versus the US dollar index (DXY).
Related: Price Analysis 12/9: BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, DOT, LTC, UNI
Now on the way higher, if history repeats itself, BTC/USD could benefit, han so in one of several Twitter posts this week.
“Few signals have correlated with Bitcoin’s macro swings as closely as China’s 10-year yield,” further comment read.
“Local tops on major $BTC impulse tops. Local CN10Y downtrend breaks with 3W RSI exceeding 50… Began each of Bitcoin’s last 3 biggest moves.”
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