Cloud says Bitcoin’s pullback looks more like a normal retracement; altcoin divergence may persist until the data are released

AT A GLANCE

Cloud believes that Bitcoin’s pullback looks more like a normal retracement, and that altcoin divergence may persist until this week’s data are released.

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Huobi HTX Chief Analyst Cloud: Bitcoin’s pullback is a normal retracement; altcoin divergence may persist until this week’s data are released

BlockBeats reports that,September 29，10-year U.S. Treasury yield returned above 5.2%overnight, reaching a new high since 2007 years ago, putting global risk assets broadly under pressure. Bitcoin pulled back to around 83000 USD, with altcoins falling more sharply. In response, Huobi HTX Chief Analyst Cloud believes that this pullback is closer to a normal retracement after the rebound and does not yet constitute the starting point of a trend reversal. Elevated U.S. Treasury yields are primarily suppressing valuations, with limited impact on overall liquidity. The crypto market’s own capital structure and holding costs have also not been disrupted. This decline looks more like a clearing of positions ahead of the release of key data.

What warrants attention is the divergence between Bitcoin and altcoins. During a period of marginal liquidity tightening, capital tends to concentrate in the leading assets with the highest degree of certainty. Altcoins lack incremental capital support and carry heavier leverage, so their retracements are amplified. Before the release of PCE and the nonfarm payrolls data this week, this divergence is highly likely to persist. If the data fall short of expectations, altcoins will have greater upside elasticity, with correspondingly higher risk; if the data exceed expectations, Bitcoin’s relative strength will become even more pronounced. Whether Bitcoin can stabilize at key support levels will be the main signal for determining whether this retracement has ended.

Note: The content of this article is not investment advice and does not constitute an offer, solicitation of an offer, or recommendation regarding any investment product.

Original link https://m.theblockbeats.info/flash/369476

Key points

BlockBeats reports that the 10-year U.S. Treasury yield returned above 5.2%overnight, reaching a new high since 2007 years ago.
The report quoted Cloud as saying that Bitcoin fell to around 83000 USD, while altcoins fell more sharply.
Cloud believes that this pullback is closer to a normal retracement after the rebound and does not yet constitute the starting point of a trend reversal.
The report states that before the release of PCE and the nonfarm payrolls data this week, the divergence between Bitcoin and altcoins is highly likely to persist.
Cloud said that whether Bitcoin can stabilize at key support levels is the main signal for determining whether this retracement has ended.
The original text notes that the content is not investment advice and does not constitute an offer, solicitation of an offer, or recommendation regarding any investment product.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

This content relays Cloud’s view of the market’s short-term trend: he believes that Bitcoin’s decline may simply be a pullback after an advance, while altcoins may be more volatile because they have less capital support and heavier leverage. Subsequent market performance is considered likely to be affected by PCE and the nonfarm payrolls data.

Why it matters to readers

It suggests that beginners pay attention to Bitcoin’s relative performance versus altcoins, as well as market volatility before and after the release of key economic data.

“Retracement” refers to a temporary decline after a price increase; “altcoins” generally refers to crypto assets other than Bitcoin; “leverage” amplifies potential gains and losses.

Risks and unknowns

This is a relay of Cloud’s view and does not represent a verified market outcome.
The evidence does not specify the exact location of the key support levels.
The evidence does not provide the actual results of PCE and the nonfarm payrolls data.
The evidence does not provide independent verification materials for the relevant price and U.S. Treasury yield.

Cloud says Bitcoin’s pullback looks more like a normal retracement; altcoin divergence may persist until the data are released

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