Bitcoin Keeps Sliding as Oil and Bond Yields Pull Back

Bitcoin refused to catch a break on Tuesday. Oil pulled back significantly on Monday and a rally in the U.S. 10-year government bond yield got snuffed out quickly, but stocks kept falling. AI stocks kept descending too. Gold, silver, and Bitcoin all stayed in the downward trend, according to cryptodaily.co.uk.

The WTI crude chart shows oil got rejected from a descending trendline that's been in place since early March. It's now trading inside a triangle pattern that must break soon. The outlet says the direction likely hinges on the US/Iran conflict after the midterm elections. If war breaks out again, oil could break out toward $120. If relations keep softening and the Strait of Hormuz reopens, a breakdown toward $75 is possible. Either way, the chart suggests it happens by the end of this month.

The 10-year yield spiked back to 5% earlier Tuesday before getting smacked down to support at 4.9%. That level lines up perfectly with the 0.618 Fibonacci retracement. If it breaks down, the yield could slide to the full measured move out of a head and shoulders pattern. But momentum indicators suggest the yield could rise again. Cryptodaily.co.uk warns this is just a correction, and rising bond yields aren't going away yet.

On the daily Bitcoin chart, price broke down out of a descending channel but found support at the $76,340 horizontal level. It's still well inside a parallel channel. Bitcoin has returned to confirm the bottom of the descending channel as resistance. Now it's a waiting game: does current support fail, and does the bottom of the parallel channel hold? If Bitcoin regains the descending channel, the top of the parallel channel at $81,200 becomes the target.

The weekly chart shows two green boxes. Bitcoin sits at the top of the upper box, where support is very strong. That could provide the base for the next upward leg, per the outlet. If it doesn't hold, the bottom of the parallel channel is next, buttressed by the 50-week SMA. Then comes the bottom of the green box at $73,800. After that, the outlet says a collapse would be on.

Below that, $69K is a massive level because it was the top of the 2021 bull market. Then there's the rising bull market trendline and strong support at $66K. The current level at $77K is possibly the favourite to stop the rot. But be aware: Bitcoin could drop to the neckline of a head and shoulders pattern before rising to complete the right shoulder. The breakdown move for that pattern would be $64K. On the flip side, a simply massive inverse head and shoulders is in play that could push Bitcoin up to at least $116K.