#Bitcoin breaks below key support#
Hot Topic Overview
Overview
Bitcoin is currently at risk of losing a key support zone, as its price has fallen below the critical support area between $90,000 and $93,000. This is linked to the recent decline in risk assets, with the US Dollar Index and Treasury yields rising on Friday following the release of the non-farm payrolls report, while the Palisades fire also negatively impacted the insurance industry. Additionally, some investment banks believe that the Fed's rate-cutting cycle is over, with Bank of America even hinting at a potential rate hike, which further fueled the decline in Bitcoin. Despite this, MicroStrategy founder Michael Saylor remains optimistic and has indicated that he might buy more Bitcoin. However, market sentiment remains negative. Some observers believe that Bitcoin's price could fall to $70,000 before rebounding. The 30-day moving average of the Coinbase-Binance BTC price differential has fallen to its lowest level since at least 2019, indicating a decline in domestic demand in the US.
Ace Hot Topic Analysis
Analysis
Bitcoin recently broke below key support levels, mainly due to an overall decline in risk assets, which is related to the rise in the US dollar index and US Treasury yields. Friday's non-farm payrolls report showed a strong US economy, fueling market expectations for the Fed to raise interest rates, which in turn led to a decline in risk asset prices. Bitcoin prices fell 2%, hovering between key support areas of $90,000 and $93,000. Some investment banks believe the Fed's easing cycle is over, and Bank of America has even hinted at a possible rate hike, further increasing the downside risk for Bitcoin. In addition, the 30-day moving average of the Coinbase-Binance BTC price difference has fallen to its lowest level since at least 2019, indicating weaker domestic demand in the US. Some observers believe that Bitcoin prices could fall to $70,000 before rising again.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Bitcoin is at risk of losing a key support level as traders sell risk assets.
The US Dollar Index and US Treasury yields benefited from Friday's nonfarm payrolls report, exacerbating the decline in risk assets.
Some investment banks believe the Fed rate-cutting cycle is over, with Bank of America suggesting a potential rate hike, further increasing the risk of a Bitcoin decline.
The consensus is that the price of Bitcoin will fall to $70,000 before rising again.