#Bitcoin falls below support level#
Hot Topic Overview
Overview
Bitcoin is currently at risk of losing key support levels as risk assets decline, while the US Dollar Index and US Treasury yields rise. Bitcoin prices fell 2% and are trading within a crucial support zone between $90,000 and $93,000. Some investment banks believe the Fed rate-cutting cycle is over, and Bank of America hints at potential rate hikes, further increasing the risk of Bitcoin losing support. Some observers believe that Bitcoin could fall to $70,000 before rising again. The 30-day moving average of the Coinbase-Binance BTC price differential has fallen to its lowest level since at least 2019, indicating waning domestic demand in the US.
Ace Hot Topic Analysis
Analysis
Bitcoin is currently at risk of losing its key support zone, primarily due to the decline in risk assets, while the US dollar index and US Treasury yields are benefiting from Friday's non-farm payrolls report. Additionally, the Palisades fire poses a risk to the insurance industry and some property and casualty insurers, further adding to market uncertainty. Some investment banks believe that the Fed's rate-cutting cycle has ended, while Bank of America has hinted at potential rate hikes, further increasing the risk of a decline in Bitcoin. Observers widely believe that Bitcoin prices will fall to $70,000 before rising again. Meanwhile, the 30-day moving average of the Coinbase-Binance BTC price difference has dropped to its lowest level since at least 2019, indicating a weakening of domestic demand in the US. In the short term, the crypto market may focus on President-elect Donald Trump's inauguration on January 20th and the ongoing FTX claim distribution.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Bitcoin faces risk of losing key support levels as traders sell risk assets, sending its price lower.
Bank of America hints at possible rate hikes, which would put pressure on Bitcoin as investors may pull back from risk assets.
Some analysts believe Bitcoin could drop to $70,000 before rallying again.
The 30-day moving average of the Coinbase-Binance BTC price difference has fallen to its lowest level since at least 2019, indicating weakening US domestic demand.