#Bitcoin Breaks Key Support#
Hot Topic Overview
Overview
Bitcoin is currently at risk of losing key support levels as traders are dumping risk assets. The dollar index and U.S. Treasury yields rose after the Friday nonfarm payrolls report, intensifying risk aversion in the market. Bitcoin prices have fallen 2%, hovering between the critical support zones of $90,000 and $93,000. Some investment banks believe that the Federal Reserve's rate-cutting cycle is over, with Bank of America even hinting at possible rate hikes, further increasing the risk of Bitcoin decline. Some observers expect Bitcoin to fall to $70,000 before rising again. Meanwhile, the 30-day moving average of the Coinbase-Binance BTC price difference has fallen to its lowest level since at least 2019, indicating weakening domestic demand in the US.
Ace Hot Topic Analysis
Analysis
Bitcoin has recently broken below key support levels, facing further downside risk. The main reason is the overall decline in risky assets, coupled with the rise in the dollar index and US Treasury yields, which are related to the recent strong non-farm payroll report. In addition, some investment banks believe that the Fed's rate cut cycle has come to an end, with Bank of America even hinting at a potential rate hike, further fueling risk-off sentiment in the market. Bitcoin prices have broken below the key support area between $90,000 and $93,000, and some analysts believe that prices could 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 weakening domestic demand in the US. Despite this, Michael Saylor, founder of MicroStrategy, has said he may buy Bitcoin again, but the impact of this on market sentiment remains to be seen. Overall, Bitcoin faces significant downward pressure in the short term, and investors need to carefully monitor market developments.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Bitcoin faces the risk of losing key support levels as traders dump risk assets.
The rise in the US dollar index and US Treasury yields is exacerbating the pressure on Bitcoin.
Some investment banks believe the Fed's rate-cutting cycle is over, with Bank of America hinting at potential rate hikes, further increasing the risk of a Bitcoin decline.
The market is widely expecting Bitcoin prices to fall to $70,000 before rising again.