Bitcoin Bulls Protect $17K as Trader Eyes Key BTC Price Catalyst in China

bitcoin (BTC) held the $17,000 support until Dec. 10 ahead of a critical week of macro data.

BTC/USD 1 hour candlestick chart (Bitstamp). Source: TradingView

CPI print will cause the Fed to “slow down”

Data of Cointelegraph Pro Markets Y TradingView It 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 on US inflation readings and policy updates to be released from December 13.

With November’s Producer Price Index (PPI) behind it, the month’s Consumer Price Index (CPI) results took center stage.

Like Cointelegraph reportedExpectations remain that the CPI will show that US inflation continues to decline, leading to renewed strength in risk assets, including crypto.

“My personal expectations are that we will see a CPI of 7.0-7.2%, a basic CPI of 5.9-6.1% and that we will again have a big impact on the markets,” Michaël van de Poppe, Founder and CEO of the trading firm Eight, wrote in a Twitter thread in the subject.

Van de Poppe added that the Fed’s December 15 Federal Open Market Committee (FOMC) meeting should respond in kind should such an outcome occur.

“FOMC to pause and slow down after this event,” he predicted.

Meanwhile, macroeconomist and stock market analyst James Choi put together a ready of stock market catalysts at the end of the week, including emerging markets and the “endless suppression” in the VIX volatility index.

“U.S. peak inflation, the weaker dollar, and the reopening of China are creating excellent investment opportunities. The $CHIR Chinese real estate ETF is up 80% since November. Unbelievable,” he said. additional.

US Dollar Index (DXY) 1-day candlestick chart. Source: TradingView

China excites Bitcoin bulls

Continuing with China, cryptanalyst and trader TechDev outlined a possible leading indicator for Bitcoin’s strength in the form of the Chinese 10-year bond yield against the US Dollar Index (DXY).

Related: Price analysis 9/12: BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, DOT, LTC, UNI

Now going 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 macroinflections as closely as China’s 10-year performance,” additional comment read.

“Local tops on major $BTC momentum tops. CN10Y local downtrend was broken by 3W RSI above 50…Started each of Bitcoin’s last 3 largest moves.”

Annotated chart of China 10-year bond yield against BTC/USD. Source: TechDev/Twitter

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