#Bitcoin breaks below support level#
Hot Topic Overview
Overview
Bitcoin is currently at risk of losing a key support zone, with its price falling below the support range between $90,000 and $93,000. This is related to the overall downward trend in risky assets, as the dollar index and U.S. Treasury yields climbed following the release of the nonfarm payrolls report on Friday. Some investment banks believe that the Fed's rate-cutting cycle is over, with Bank of America even hinting at a possible rate hike, which further exacerbated the decline in Bitcoin. Some observers expect Bitcoin to fall to $70,000 before rebounding. Additionally, the 30-day moving average of the Coinbase-Binance BTC price differential has fallen to its lowest level since at least 2019, suggesting weakening domestic demand in the U.S.
Ace Hot Topic Analysis
Analysis
Bitcoin has recently broken below support levels, primarily due to a decline in risk assets, a rise in the US dollar index, and an increase in US Treasury yields. The strong US economy reflected in the non-farm payrolls report fueled expectations of the Fed raising interest rates, leading to a decline in risk asset prices. Bitcoin price dropped 2%, breaking through key support zones of $90,000 and $93,000, while other cryptocurrencies also witnessed significant declines. Some analysts believe Bitcoin could drop to $70,000 before rebounding. Furthermore, the 30-day moving average of the Coinbase-Binance BTC price differential has dropped to its lowest level since at least 2019, indicating weakening domestic demand in the US.
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, driving its price lower.
The dollar index and US Treasury yields are rising, exacerbating Bitcoin's decline.
Some investment banks believe the Fed's rate cutting cycle is over, with Bank of America hinting at potential rate hikes, further adding to Bitcoin's downward pressure.
Market consensus suggests Bitcoin price will fall to $70,000, followed by a subsequent rise.