In a new market analysis, 10x Research suggests that Bitcoin’s (BTC) recent rally toward $88,000 is due to a weakening U.S. dollar and a parallel rise in gold prices.
The firm also notes that investors’ growing concerns about the Fed’s independence are a major factor.
Markus Thielen, research director at 10x Research, cited the 0.7% drop in the US dollar index against the euro and the 2% rise in gold as critical factors behind Bitcoin’s upward momentum. “Bitcoin’s rise to $87,000 appears to have been driven by the sharp decline in the US dollar index and the 2% rise in gold, both triggered by Trump’s attempt to replace Fed Chair Powell,” according to Thielen.
While markets are also eyeing a potential US-Japan trade deal, Thielen said the main catalyst is “market concerns about the independence of the Fed.”
From a technical perspective, Thielen observed that Bitcoin “broke out of a downtrend channel that closely resembles the classic Falling Wedge pattern.” Thielen explained that this pattern is typically bullish and usually signals a continuation or reversal in price direction. “The key feature of this pattern is that volume gradually decreases along the wedge and then increases sharply upon breakout, confirming the move,” he added.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/veteran-analyst-reveals-the-real-reason-for-todays-rally-in-bitcoin-price/