#Bitcoin breaks below support level#
Hot Topic Overview
Overview
Bitcoin is currently facing the risk of losing key support zones as traders are dumping risk assets. The US dollar index and US Treasury yields rose following Friday's nonfarm payrolls release, causing risk assets to decline. Bitcoin price fell by 2%, trading between the key support areas of $90,000 and $93,000. Some investment banks believe the Fed's rate cut cycle is over, and Bank of America has hinted at potential rate hikes, which adds to the risk of Bitcoin losing its support zones. Some observers believe that the price of Bitcoin could 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, suggesting weakening domestic demand in the US.
Ace Hot Topic Analysis
Analysis
Bitcoin is currently at risk of losing its key support levels, mainly due to the decline in risk assets. The US Dollar Index and US Treasury yields are benefiting from Friday’s non-farm payroll report. Furthermore, some investment banks believe that the Federal Reserve's rate-cutting cycle has ended, with Bank of America hinting at a potential rate hike, further pressuring Bitcoin. While Michael Saylor stated that he might buy Bitcoin again, its impact on the market is limited and cannot offset the negative sentiment. Some observers believe that Bitcoin’s price could fall to $70,000 before rising 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 demand in the US. In the short term, the crypto market might focus on the January 20th inauguration of President-elect Donald Trump and the ongoing FTX claims distribution.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Bitcoin faces risk of losing key support area as traders sell risk assets.
The dollar index and US Treasury yields benefited from Friday's non-farm payrolls report, leading to a decline in risk assets.
Some investment banks believe the Fed's rate cut cycle is over, and Bank of America has hinted at a possible rate hike, further increasing the risk of Bitcoin's decline.
The consensus is that Bitcoin price will decline to $70,000 before rising again.