#Buy Bitcoin on dips#

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Hot Topic Overview

Overview

The Bitcoin market is currently showing some stability, with prices rebounding to near $95,000, supported by bargain hunters. Recently, Bitcoin prices tested the long-term support zone of $90,000-$93,000, which has successfully prevented at least six declines since the second half of November. However, the upcoming US non-farm payrolls report will test this latest rebound. A stronger-than-expected jobs report could exacerbate concerns about the Fed's hawkish stance, further pushing up inflation-adjusted bond yields, which would be detrimental to risk assets. On the other hand, if the jobs data is weak, it could trigger market expectations of a Fed rate cut, which would be beneficial to risk assets, and Bitcoin could attempt to break through $100,000 again.

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Analysis

The Bitcoin market is currently showing some stability, with prices rebounding to near $95,000, supported by bargain hunters. Recently, Bitcoin prices tested the long-term support zone of $90,000-$93,000, successfully preventing at least six declines. However, the upcoming US non-farm payrolls report will test this rebound. The report is expected to show an increase of 164,000 jobs in December. Stronger-than-expected employment data could exacerbate concerns about the Fed's hawkish stance, further pushing up inflation-adjusted bond yields, putting pressure on risk assets. On the other hand, if the employment data is weak, it could trigger market expectations of a Fed rate cut and shift market sentiment in favor of risk assets. Therefore, the upcoming employment data will have a significant impact on the direction of Bitcoin prices.

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Classic Views

Bitcoin buyers on dips have played a supporting role in the recent market volatility, helping prices rebound to near $95,000.

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Friday's US nonfarm payrolls report will test the recent rally, with a stronger-than-expected jobs report likely to exacerbate concerns about the Fed's hawkish stance, further pushing up inflation-adjusted bond yields, which would be negative for risk assets.

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If the jobs data is weak, it could trigger market expectations of a Fed rate cut, shifting market sentiment in favor of risk assets, and Bitcoin could attempt to retest $100,000.

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There are potential risks in the Bitcoin market, such as the US government potentially selling its Bitcoin holdings, as well as inflation concerns and interest rate volatility.

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