Bitcoin Bullish Signals Emerge Amid Macro Trends

10x Research has highlighted a series of macroeconomic signals that are turning bullish for Bitcoin, suggesting a potential breakout from its current consolidation phase. The firm noted that rising oil prices, stable U.S. Treasury yields, and mixed employment data are contributing to a strengthening of Bitcoin's macro fundamentals. Additionally, the cautious stance of the Federal Reserve is adding to the positive outlook.

According to the research, there is a potential for treasury funds from certain altcoins, such as ADA and DOT, to shift towards Bitcoin. This, combined with key changes in the credit environment, could signal a trend reversal in the market. Over the past month, Bitcoin has been trading around $106,000 with a volatility range of ±4%. The longer this consolidation phase persists, the higher the likelihood of a significant breakout.

Federal Reserve Chair Powell is expected to maintain a neutral tone at this week’s FOMC meeting, and there is a risk of an increase in 10-year U.S. Treasury yields. However, on-chain indicators still support the current price levels. As long as Bitcoin remains above $100,437, the downside potential is limited. This suggests that the current price levels are relatively stable and that any significant downward movement is unlikely.

Geopolitical risks have been subsiding, and seasonal factors over the summer could lead to further short-term consolidation for Bitcoin. However, a shift in medium- to long-term macro signals is laying the groundwork for potential upside later this year. This indicates that while there may be short-term fluctuations, the overall trend for Bitcoin is expected to be positive in the coming months.

Ask Aime: Is Bitcoin's breakout imminent, considering stable U.S. Treasury yields and mixed employment data?