Bitcoin bulls protect $17K as trader eyes key China BTC price catalyst
China offers a potential leading indicator for Bitcoin price strength with U.S. economic data due next week.
Bitcoin (BTC) maintained $17,000 support into Dec. 10 ahead of a critical week of macro data.
CPI print will make Fed “slow down”
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it traded sideways after the close of trading on Wall Street.
The pair looked set for a quiet weekend, with all eyes focused on United States inflation readings and policy updates due from Dec. 13 onward.
With the Producer Price Index (PPI) November print behind it, the month’s Consumer Price Index (CPI) results took center stage.
As Cointelegraph reported, expectations remain that CPI will show U.S. inflation continuing to abate, sparking renewed strength in risk assets, including crypto.
“My personal expectations are that we’ll be seeing CPI come in at 7.0-7.2%, Core CPI at 5.9-6.1% and that we’ll 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 topic.
Van de Poppe added that the Federal Reserve’s Federal Open Market Committee (FOMC) meeting on Dec. 15 should respond in kind should that outcome result.
“FOMC to pause and slow down after this event,” he predicted.
Macro economist and stocks analyst James Choi meanwhile produced a list of stock market catalysts as the week closed, these including emerging markets and “never ending suppression” in the VIX volatility index.
“USA Peak inflation, Weaker $USD, China reopening are making some great investing opportunities. Chinese Real estate ETF $CHIR up staggering 80% since November. Unbelievable,” he added.
China gets Bitcoin bulls excited
Continuing on China, crypto analyst and trader TechDev outlined a potential leading indicator for Bitcoin strength in the form of the Chinese ten-year bond yield versus the U.S. dollar index (DXY).
Related: Price analysis 12/9: BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, DOT, LTC, UNI
Now heading higher, if history repeats itself, BTC/USD could benefit in kind, he said in one of several Twitter posts this week.
“Few signals have correlated with Bitcoin’s macro inflections as tightly as China’s 10-year yield,” further commentary read.
“Local tops at major $BTC impulse tops. Local CN10Y downtrend breaking with 3W RSI exceeding 50… Began each of Bitcoin’s last 3 largest moves.”
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
