#Bitcoin breaks below support level#
Hot Topic Overview
Overview
Bitcoin recently broke below its support level, risking the loss of a key support zone. This is related to the recent decline in risk assets, with the US dollar index and US Treasury yields rising on the back of a strong non-farm payrolls report. Bitcoin fell more than 2%, hovering between key support areas of $90,000 and $93,000. Other cryptocurrencies fell even harder, with ETH hitting its lowest level since December 21, and XRP’s technical outlook also impacted by risk-off sentiment. Despite this, MicroStrategy still said it may buy Bitcoin again, but market sentiment remains negative. Some analysts believe Bitcoin could fall to $70,000 before bouncing back. The 30-day moving average of the Coinbase-Binance BTC price differential has fallen to its lowest level since at least 2019, suggesting weakening domestic demand in the US.
Ace Hot Topic Analysis
Analysis
Bitcoin recently broke below its support levels, driven primarily by a broader decline in risk assets, a rising US Dollar Index, and increasing US Treasury yields. Following the release of the Non-Farm Payrolls report, market expectations for a Federal Reserve interest rate cut weakened, with some even suggesting a potential rate hike. This led to a sell-off in risk assets. Additionally, some investment banks believe the Fed's rate-cutting cycle has ended, and Bank of America hinted at a possible rate increase, further intensifying market concerns about cryptocurrencies. Bitcoin's price has broken below crucial support zones at $90,000 and $93,000, with some observers predicting a potential drop to $70,000. Meanwhile, the 30-day moving average of the Coinbase-Binance BTC price difference has fallen to its lowest level since at least 2019, indicating a weakening of domestic demand in the US. Despite these bearish signals, Michael Saylor, the founder of MicroStrategy, has indicated a potential for further Bitcoin purchases, which could potentially impact market sentiment. Overall, Bitcoin currently faces significant downward pressure, and its future trajectory will depend on the Fed's monetary policy, macroeconomic conditions, and market sentiment.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Bitcoin faces risk of losing key support area as traders sell risk assets.
The dollar index and US Treasury yields are rising, putting pressure on Bitcoin.
Some investment banks believe the Fed's rate-cutting cycle is over, with Bank of America hinting at a possible rate hike, which has increased the risk of Bitcoin falling.
Consensus is that Bitcoin will drop to $70,000 before rising again.