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Matrixport: Bitcoin Forms Higher Lows, Bullish Signals Emerge

[Matrixport: Bitcoin Forms Higher Lows, Bullish Signal Emerges] Matrixport’s daily chart analysis indicates that Bitcoin has dropped over 6%, driven by new speculation of a Bank of Japan rate hike triggering yen carry trade unwinding and nearly $1 billion in leveraged positions being liquidated. Crypto-related stocks, including MicroStrategy, saw declines of up to 12%. Coupled with weak market sentiment and about $3.5 billion in outflows from Bitcoin ETFs in November, downward pressure has intensified.

After Chinese regulators issued a warning against illegal digital token activities, risk-off sentiment increased, and Bitcoin briefly fell below $84,000. As the stock market stabilized and U.S. banks allowed advisors to recommend up to a 4% Bitcoin allocation for wealthy clients, Bitcoin rebounded above $90,000. Vanguard eventually opened Bitcoin investment channels to clients, further boosting market sentiment. From a technical perspective, Bitcoin has formed a “higher lows” pattern, which could be a bullish signal.

BTC2.17%
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