#Bitcoin falls below support level#
Hot Topic Overview
Overview
Bitcoin is currently at risk of losing a key support area, having broken below the support zone between $90,000 and $93,000. This is linked to the overall downward trend in risk assets, as the dollar index and US Treasury yields rose after Friday's non-farm payrolls report. Some investment banks believe that the Fed's rate-cutting cycle has come to an end, with Bank of America even hinting at a potential rate hike, further exacerbating Bitcoin's decline. Some observers expect Bitcoin prices to fall to $70,000 before rebounding. Furthermore, the 30-day moving average of the Coinbase-Binance BTC price difference has fallen to its lowest level since at least 2019, indicating weakened demand from the US.
Ace Hot Topic Analysis
Analysis
Bitcoin recently broke below its support levels, driven primarily by an overall decline in risk assets, which is linked to the rise in the US dollar index and US Treasury yields. Friday’s strong nonfarm payroll report fueled expectations of further rate hikes by the Federal Reserve, causing risk asset prices to decline. Bitcoin prices fell by 2%, breaking through key support areas of $90,000 and $93,000, while other cryptocurrencies experienced even steeper declines. Some investment banks believe that the Fed’s rate-cutting cycle has ended, with Bank of America even suggesting a possible rate hike, further exacerbating the decline in Bitcoin. Some observers believe that Bitcoin prices could fall to $70,000 before rebounding again. Additionally, the 30-day moving average of the Coinbase-Binance BTC price differential has dropped to its lowest level since at least 2019, suggesting weakening domestic demand in the US.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Bitcoin faces the risk of losing key support levels as traders sell risk assets.
US Treasury yields and the dollar index have risen, pushing Bitcoin lower.
Some investment banks believe the Fed's rate-cutting cycle is over, and Bank of America has hinted at potential rate hikes, exacerbating the risk of a Bitcoin decline.
The consensus is that Bitcoin will decline to $70,000 before bouncing back up.