01 June 2023 17:30, UTC
Reading time: ~2 m
Prominent trader Henrik Zeberg has expressed his bullish outlook on Bitcoin, citing several key factors that support his position. In a recent tweet, Zeberg highlighted the correlation between Bitcoin and U.S. bonds, as well as the anticipated crash in rates and subsequent rally in bonds. Based on these factors, Zeberg believes that Bitcoin is poised for a strong rally in the near future.
Zeberg’s analysis focuses on the historical performance of Bitcoin during different interest rate environments. He notes that BTC tends to struggle during periods of rate climbs, such as those observed in 2021 and 2022.
However, during rate declines, the cryptocurrency has historically performed well, argues the trader. Drawing on the positive correlation between Bitcoin and U.S. bonds, particularly in terms of value, Zeberg predicts that the forthcoming crash in rates and subsequent bond rally will have a positive impact on Bitcoin’s price.
Meanwhile, BTC has been trading within a relatively narrow range of $26,800 to $28,000 for the past two weeks. This decrease in volatility is reflected in the BVOL index, which has fallen to levels last seen at the end of last year and the beginning of this year. The market has entered a period of consolidation, with buyers and sellers eagerly awaiting the next move.
As Zeberg’s prediction continues to generate interest among market participants, the question of whether his forecast will materialize or if bears will overpower bulls remains unanswered. The future trajectory of Bitcoin’s price, whether it will rise or fall, will be revealed in the days ahead.
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