All Eyes on the Treasury Yields

On October 3, 2023, the U.S. 10-year Treasury yields rocketed above 4.8%, a height reminiscent of 2007 that sent shivers through financial markets. Now, when someone mentions a spread, we’re not talking about the creamy goodness on your toast. Jeffrey Gundlach, CEO of DoubleLine Capital, hopped onto X (formerly Twitter) to shed light on the alarming narrowing of the spread between 2-year and 10-year Treasury yields, down from 109 basis points to a mere 35. His message? Brace yourselves; this might be a recession alarm.

Printing Money: The Only Guaranteed Way to Lose Your Sanity?

Ah, the sweet sound of money printing! Arthur Hayes, the former CEO of BitMEX, vented his thoughts on the social platform, suggesting that in the likely event of a faster bear steepener, the government may resort to monetary conjuring tricks to save a spiraling bond market. Sounds like a recipe for disaster, doesn’t it? But bear with us, dear reader—some investors believe this mania might kickstart the next big crypto bull run. Who doesn’t love a good plot twist?

Spotlight on Bitcoin: The Caped Crusader of Crypto

Bitcoin, the golden child of digital currencies, soared above $28,143 on October 2. Although, judging by the long wick of the candlestick, it seems the party was short-lived as bears crashed the bash. A valiant defense by bulls at $27,160 indicates their determination. If they can break through the overhead resistance at $28,143, we might just see a shiny double bottom pattern aiming for a glorious $31,486. Just don’t be surprised if the bears come knocking again and send it plummeting to $26,000 instead.

Ether: The Stiff Competition

Ether (ETH) experienced a dramatic drop from its resistance level of $1,746, proving that just like a game of tug-of-war, the bears are keeping a strong grip. It’s a wild world out there: the 20-day EMA ($1,640) may hold the key to determining if ETH can reclaim its name. A bounce off this critical area could thrust it towards a double bottom pattern with a target of $1,961. But mind the naysayers—if it drops below the moving averages, prepare for another round of range-bound bickering between $1,531 and $1,746!

And the Rest of the Gang: An Altcoin Parade

Various cryptos are warming up, ready to dazzle us with their performances:

• BNB: After breaking above $220, it’s now battling to gain foothold. A failure here could see it slide towards $203.
• XRP: The bulls may find strength above $0.56, but if it falters, we might just hang around the $0.41 range a bit longer.
• Solana: Forming an intriguing inverse head and shoulders pattern, Solana could dance its way to $32.81—or plummet to $17.33 if it loses steam.
• Cardano: A critical bounce off the 20-day EMA ($0.25) could signal a potential rally; otherwise, bears could drag it back to $0.24.
• Dogecoin: Hanging on above $0.06; the tension’s rising as repeated tests weaken this support.

Charting a course in this unpredictable landscape may seem daunting, but as the pros say: if you don’t chart it, you can’t target it. Grab your digital compass and navigate the thrilling ride ahead!