United States 10-year Treasury yields hit their highest level since 2007 on October 3, soaring above 4.8%. The spread between the 2-year and 10-year Treasury yields has also narrowed significantly. This has led some experts to sound the alarm bell, warning of an impending recession.
DoubleLine Capital CEO, Jeffrey Gundlach, noted that the narrowing spread between the yields is a cause for concern and should put everyone on recession warning. Arthur Hayes, former CEO of BitMEX, also warned that the government will have to print money to save the bond market, as rising long-term interest rates may cause firms to collapse.
However, amidst this uncertain macroeconomic environment, institutional investors seem to be warming up to cryptocurrencies. CoinShares’ latest report shows inflows of $21 million into digital asset investment products for the first time in six weeks.
Taking a look at the charts, Bitcoin (BTC) has seen some volatility, with a rise above $28,143 before facing resistance. If the price can close above this level, it may complete a short-term double bottom pattern and target $31,486. However, a failure to break resistance could result in a drop to $26,000.
Ether (ETH) has faced strong resistance at $1,746, with the price turning sharply downwards. If the price can rebound from the current level, it may attempt to overcome this obstacle and target $1,961. However, a break below the moving averages could suggest further consolidation within the $1,531 to $1,746 range.
BNB (BNB) briefly broke above the $220 resistance level but failed to sustain the breakout. The failure to maintain the price above the 20-day EMA is seen as negative, potentially leading to a decline towards the uptrend line. However, a close above $220 could signal an up-move towards $235 and $250.
XRP (XRP) has broken above a symmetrical triangle pattern and is aiming to surmount resistance at $0.56. If successful, it could signal the start of a new uptrend with a target objective of $0.66. However, a downturn from $0.56 could lead to further range-bound trading between $0.56 and $0.41.
Solana (SOL) has formed a potential inverse head and shoulders pattern within its range between $14 and $27.12. A breakout above the neckline could target $32.81, while a drop below the 20-day EMA may indicate the bulls have given up.
Cardano (ADA) has turned down from $0.27 but found support at the 20-day EMA. A rebound from this level could signal a change in sentiment and a push towards $0.29 and $0.32. However, a break below the 20-day EMA could lead to a decline towards the vital support at $0.24.
Dogecoin (DOGE) briefly broke above the 50-day SMA but failed to sustain higher levels. The coin has reached a critical support level at $0.06, and a break below this level could result in a drop to the next major support at $0.055. However, a bullish divergence on the RSI suggests the bears may be losing their grip.
Overall, the cryptocurrency market continues to see volatility, with some coins showing signs of potential up-moves while others face resistance and consolidation. The uncertain macroeconomic environment and the performance of traditional markets, such as Treasury yields, may play a significant role in determining the next moves for cryptocurrencies.