#Bitcoin falls below support level#
Hot Topic Overview
Overview
Bitcoin is currently at risk of losing its key support zone, with its price having fallen below the support area between $90,000 and $93,000. This is primarily due to the decline in risk assets, with the US Dollar Index and US Treasury yields rising after Friday's non-farm payrolls report. Additionally, some investment banks believe the Fed's rate-cutting cycle has ended, with Bank of America even hinting at a potential rate hike, further fueling the negative sentiment towards Bitcoin. While Michael Saylor stated that MicroStrategy may buy Bitcoin again, the market consensus is that Bitcoin is likely to decline to $70,000 in the short term before rising again.
Ace Hot Topic Analysis
Analysis
Bitcoin recently broke below support levels, primarily due to a broad decline in risk assets, a rising US dollar index and US Treasury yields. The strong US economy shown in the Nonfarm Payrolls report exacerbated market expectations of a Fed rate hike, which led to a decline in risk asset prices. Bitcoin fell below key support zones of $90,000 and $93,000, dropping over 2%. Other cryptocurrencies also experienced significant declines, with Ethereum hitting its lowest level since December 21st. Some analysts believe Bitcoin may fall to $70,000 before rebounding. Additionally, the 30-day moving average of the Coinbase-Binance BTC price difference has fallen to its lowest level since at least 2019, suggesting weakening domestic demand in the US. Despite the bearish sentiment, MicroStrategy CEO Michael Saylor has indicated a potential for further Bitcoin purchases, which could alleviate some market negativity.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Bitcoin faces the risk of losing a key support level as traders are selling risk assets.
The US dollar index and US Treasury yields are rising, exacerbating the downward pressure on Bitcoin.
Some investment banks believe the Fed's rate-cutting cycle is over, while Bank of America has hinted at a potential rate hike, further increasing the downside risk for Bitcoin.
The consensus is that Bitcoin's price will fall to $70,000 before rising again.