#Bitcoin breaks below support levels.#
Hot Topic Overview
Overview
Bitcoin faces the risk of losing key support levels in the near term, driven primarily by the decline in risk assets, the rise in the US dollar index and US Treasury yields. The release of the non-farm payroll report exacerbated this trend, causing Bitcoin to break below the key support area between $90,000 and $93,000. Additionally, some investment banks believe that the Fed's rate cut cycle is over, with Bank of America even hinting at a potential rate hike, further increasing the risk of a Bitcoin decline. Despite this, MicroStrategy founder Michael Saylor has indicated a potential for further Bitcoin purchases, which could have some impact on market sentiment. Currently, the market broadly anticipates a dip in Bitcoin prices to $70,000, followed by a subsequent rally.
Ace Hot Topic Analysis
Analysis
Bitcoin recently broke below its support level, driven mainly by an overall decline in risk assets, which is linked to the rising US Dollar Index and Treasury yields. The strong Nonfarm Payrolls report released on Friday fueled market expectations for the Federal Reserve to hike interest rates, resulting in a drop in risk asset prices. Bitcoin fell 2% and broke below the key support zone between $90,000 and $93,000, while other cryptocurrencies also saw significant declines. Some analysts believe Bitcoin could drop to $70,000 before rising again. Furthermore, the 30-day moving average of the Coinbase-Binance BTC price difference has fallen to its lowest level since at least 2019, suggesting weakening US domestic demand. Despite this, MicroStrategy founder Michael Saylor has indicated that he may purchase more Bitcoin, which could have some impact on market sentiment. Overall, Bitcoin is currently facing significant downward pressure, and investors need to keep a close eye on market developments.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Bitcoin risks losing key support levels as traders sell risk assets.
The US dollar index and US Treasury yields are rising, adding to the downward pressure on Bitcoin.
Some investment banks believe the Fed rate cut cycle is over, with Bank of America suggesting a possible rate hike, further increasing the risk of a Bitcoin decline.
The consensus is that Bitcoin will decline to $7,000 before rising again.