Bitcoin (CRYPTO: BTC) has broken out of a symmetrical triangle pattern to the upside, after a rally on Sunday evening. It is best to proceed with caution after the rally on Sunday, particularly on low volume, as they typically reverse.
However, I think relief across global markets and crypto is due in the short term. This is partly because China have decided to cut rates. In a monthly fixing, China have lowered the five-year loan prime rate (LPR) by 15 basis points to 4.45%. This is the biggest reduction since China revamped the mechanism in 2019 and means that China is stimulating its economy in attempt to propel growth. Even though the reason for cutting rates is due to Chinese consumers being very weak at the moment and lockdowns persisting, markets are forward looking, so if the government is stimulating for future growth, it is usually bullish for risk-on assets.
