#Bitcoin breaks support level.#
Hot Topic Overview
Overview
Bitcoin is currently at risk of losing a key support area, having broken below the $90,000 to $93,000 support zone. This is primarily due to risk assets declining, with the dollar index and US Treasury yields surging following the release of Friday's non-farm payrolls report. Some investment banks believe the Fed rate-cutting cycle is over, with Bank of America even hinting at potential rate hikes, further exacerbating the decline in bitcoin. While some observers believe bitcoin prices may drop to $70,000 before rebounding, market sentiment is currently negative, and the 30-day moving average of the Coinbase-Binance BTC price differential has fallen to its lowest level since at least 2019, indicating weakening domestic demand in the US.
Ace Hot Topic Analysis
Analysis
Bitcoin recently broke below its support level, primarily due to the overall decline in risk assets. The US dollar index and US Treasury yields rose following the release of the non-farm payrolls report, prompting investors to sell risk assets, impacting Bitcoin as well. Additionally, some investment banks believe that the Fed's rate-cutting cycle has come to an end, with Bank of America even hinting at a potential rate hike, further exacerbating bearish sentiment towards Bitcoin. Currently, Bitcoin faces the risk of losing key support zones at $90,000 and $93,000, with some observers predicting a drop to $70,000. Despite this, MicroStrategy founder Michael Saylor has stated that they may purchase Bitcoin again, potentially mitigating some of the negative market sentiment. Overall, Bitcoin faces significant pressure in the short term, with market movements contingent upon factors such as changes in Fed policy, macroeconomic environment, and investor sentiment.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Bitcoin risks losing key support area as traders dump risk assets.
Dollar index and US Treasury yields rise, intensifying downward pressure on Bitcoin.
Some analysts believe Bitcoin could fall to $70,000 before rallying again.
Domestic demand in the US is weakening, and the 30-day moving average of the Coinbase-Binance BTC price difference has fallen to its lowest level since at least 2019.