It should come as no surprise that some have taken the recent price action as a death knell for Bitcoin’s bull trend, which began in March when the asset rallied strongly off the $3,700 lows<\/a>. Yet the bearish trend may soon come to an end.<\/p>\n Crucial fundamental and technical factors, in fact, have shown that BTC is primed to revert back into a rally after the recent correction. Three of these factors are as follows.<\/p>\n According to a prominent crypto trader, Bitcoin is printing a textbook bullish sign: a falling wedge.<\/p>\n Falling wedges, studies suggest, have a high likelihood of breaking higher. Such patterns have also preceded strong gains in the Bitcoin market over the past few months.<\/p>\n Since our last report on the situation between the U.S. and China due to the Hong Kong democracy movement,<\/a> things have become worse due to fears of sanctions.<\/p>\n The Chinese yuan, as Twitter account “Yuan Talks” noted, is at its weakest level since September 2019 \u2014 the peak of the 2019 trade war.<\/p>\n Bitcoin stands to benefit as it can act as a safe-haven for Chinese investors trying to mitigate the risks of a falling domestic currency.<\/p>\n Chris Burniske, a partner at Placeholder Capital, explained:<\/p>\n \u201cIf China\u2019s CNY continues to weaken against USD, then we could have a 2015 and 2016 repeat, where BTC strength coincided with yuan weakness.\u201d<\/p><\/blockquote>\n Offshore #yuan<\/a> weakens more than 200 pips to approach 7.17 per USD, hitting the weakest level since Sept 2019. pic.twitter.com\/CkE1TIR3RZ<\/a><\/p>\n — YUAN TALKS (@YuanTalks) May 27, 2020<\/a><\/p><\/blockquote>\nRelated Reading: Crypto Tidbits: Satoshi Isn\u2019t Dumping His BTC, China \u2018Bans\u2019 Cryptocurrency Mining<\/a><\/h6>\n
#1: Bitcoin Prints Textbook Falling Wedge Pattern<\/h2>\n
![\"Chart](\"https:\/\/i0.wp.com\/pbs.twimg.com\/media\/EZAKPzzXkAQoth8.jpg?resize=1200%2C675&ssl=1\")
#2: Tensions Between the U.S. and China Grow; Yuan Crushed<\/strong><\/h2>\n
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