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PrimeXBT: Is this the start of a Bitcoin bull run? A 2022 signal appeared before the rally
Bitcoin rose from around $64,000 to nearly $80,000 in four sessions last week. A weekly momentum divergence preceded the advance, and the daily reading reached levels last seen in January 2023. The US Treasury also announced plans to double its buyback operations.
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What happened
Bitcoin rose from around $64,000 to nearly $80,000 in four sessions last week. A weekly momentum divergence preceded the advance, and the daily reading reached levels last seen in January 2023. The US Treasury also announced plans to double its buyback operations.
Confirmed
Global impact / market context
A momentum divergence is a technical signal that may indicate a trend change. If the signal is correct, Bitcoin’s rally could continue, attracting more investors. The Treasury’s larger buybacks may increase cash available in financial markets, possibly supporting riskier assets like Bitcoin.
Analyst inference
Bitcoin’s sharp price move often draws attention from traders and media. The Treasury’s liquidity support, which is extra cash in the bond market, can influence investor behavior. When cash is plentiful, investors may take on more risk, potentially boosting demand for cryptocurrencies.
Analyst inference
What to watch
- The US Treasury will run larger buyback operations from September 9 through November 4, covering 10- to 30-year securities. Watch for any changes in this schedule or size. Confirmed
- Monitor Bitcoin’s daily momentum indicator to see if it continues to rise above January 2023 levels. If it stalls, the rally may lose strength. Proposed
- If Bitcoin holds above $80,000, investor confidence may grow, leading to more buying. A drop below $64,000 could signal the end of the rally. Analyst inference
Affected assets
- BTC — Bitcoin