#Bitcoin Breaks Below Key Support#
Hot Topic Overview
Overview
Bitcoin is currently at risk of losing a key support area, as its price has fallen below the support zone between $90,000 and $93,000. This is mainly due to the decline in risk assets, with the dollar index and US Treasury yields strengthening after the release of the non-farm payrolls report on Friday. In addition, some investment banks believe that the Fed's rate cut cycle has ended, and Bank of America even hinted at a possible rate hike, further intensifying the bearish sentiment towards Bitcoin. Despite this, Michael Saylor, founder of MicroStrategy, still said he may buy Bitcoin again, which may have some positive impact on market sentiment. Currently, the market generally expects Bitcoin prices to fall to $70,000 before rising again.
Ace Hot Topic Analysis
Analysis
Bitcoin recently broke below key support, mainly due to the overall decline in risk assets, the rise in the US Dollar Index and US Treasury yields. After the release of the nonfarm payroll report, market expectations for a Fed rate cut weakened, and there was even the possibility of a rate hike, which led investors to sell risk assets, and Bitcoin was also affected. In addition, the 30-day moving average of the Coinbase-Binance BTC price difference fell to its lowest level since 2019, indicating a weakening of domestic demand in the United States. Some analysts believe that the price of Bitcoin could fall to $70,000 before rising again. Although Michael Saylor said that MicroStrategy may buy Bitcoin again, the market's reaction to the news was not positive. Overall, Bitcoin is currently facing significant downward pressure, and investors need to closely monitor market dynamics and operate cautiously.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Bitcoin faces risk of losing key support zone as traders sell risk assets, sending the price lower.
Some investment banks believe the Fed's rate-cutting cycle has ended, with Bank of America hinting at possible rate increases, exacerbating the risk of a Bitcoin drop.
Consensus is that Bitcoin price will drop to $70,000, followed by another rally.
The 30-day moving average of the Coinbase-Binance BTC price difference has fallen to its lowest level since at least 2019, signaling weakening demand in the US.