#Bitcoin breaks below support level#
Hot Topic Overview
Overview
Bitcoin is currently facing the risk of losing a key support zone, as its price has fallen below the key support area between $90,000 and $93,000. This is mainly driven by the decline in risk assets as the US dollar index and Treasury yields surged after Friday's nonfarm payroll report. Some investment banks believe that the Federal Reserve rate cut cycle is over, with Bank of America even hinting at a possible rate hike, further exacerbating Bitcoin's decline. Despite this, Michael Saylor, founder of MicroStrategy, still said he may buy Bitcoin again, but it remains to be seen whether this news can reverse the negative market sentiment. Currently, the market is widely expecting Bitcoin's price to drop to $70,000 before rising again.
Ace Hot Topic Analysis
Analysis
Bitcoin recently broke through its support levels, primarily due to the overall decline in risk assets. This is related to the rise in the US Dollar Index and US Treasury yields. Friday's non-farm payroll report indicated a strong US economy, fueling market expectations of a Federal Reserve rate hike, leading to a strengthening dollar and a decline in risk asset prices. Bitcoin prices fell by over 2%, breaking through key support zones at $90,000 and $93,000. Some analysts believe Bitcoin could drop to $70,000 before rebounding again. Additionally, the 30-day moving average of the Coinbase-Binance BTC price differential has fallen to its lowest level since at least 2019, indicating a weakening in domestic US demand. Some investment banks believe the Federal Reserve's rate cut cycle has come to an end, with Bank of America hinting at potential rate hikes, further intensifying the downward pressure on Bitcoin.
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, sending prices lower.
The rise in the dollar index and US Treasury yields has amplified selling pressure on Bitcoin.
Some investment banks believe the Fed's rate-cutting cycle is over, with Bank of America hinting at possible rate hikes, further fueling market concerns about risk assets.
The consensus view is that Bitcoin will drop to $70,000 before rising again.