After breaking through the resistance level of $28000 again over the weekend, Bitcoin has fallen back to its lowest level since the end of September.Bitcoin (BTC) fell below $27000 for the first time since the beginning of this month on Wednesday, as the stock market rose for four consecutive days and bond yields fell for three consecutive days, failing to stimulate interest in cryptocurrency purchases
After breaking through the resistance level of $28000 again over the weekend, Bitcoin has fallen back to its lowest level since the end of September.
Bitcoin (BTC) fell below $27000 for the first time since the beginning of this month on Wednesday, as the stock market rose for four consecutive days and bond yields fell for three consecutive days, failing to stimulate interest in cryptocurrency purchases. Late Wednesday afternoon, Bitcoin fell 2.5% in the past 24 hours, lower than the 1.75% decline in the CoinDesk Market Index (CMI).
In the large cryptocurrency market, RippleLabs' XRP, Litecoin (LTC), and Polkadot's native token (DOT) all fell by 2% to 3%. Ethereum (ETH) performed slightly better than Bitcoin (BTC) and Bitcoin Cash (BCH), falling 0.7% and trading at approximately $1550. CoinGlass data shows that cryptocurrency derivative traders who bet on higher prices for long positions suffered $50 million in liquidation on the same day. The clearing amount of Bitcoin is $22.5 million, setting the second highest level this month.
At the same time, traditional markets continued to rise, with the Nasdaq Index rising 0.7% and the S&P 500 Index rising 0.4%. Both indices have been rising for four consecutive days. The bond market also showed a continuous upward trend, with the yield of 10-year US treasury bond bonds falling by 10 basis points to 4.56%. This decrease has decreased compared to last Friday's 4.80%.
In terms of economic news, the September Producer Price Index (PPI) in the United States was slightly better than expected. The minutes of the latest meeting of the Federal Open Market Committee (FOMC) of the Federal Reserve indicate that most members expect to raise interest rates again before completing the monetary tightening cycle. These factors may all affect the price fluctuations in the cryptocurrency market.
What will happen to the BTC price next?
Some analysts point out that in the context of the decline in the US stock market and the sharp decline in the bond market, Bitcoin's performance has been exceptionally stable in the past few weeks. However, after cryptocurrencies failed to break through the significant resistance level of around $28000 (the convergence point of the 200 day and 200 week moving averages), this trend seems to have disappeared.
Popular trader XO stated in the X post that Bitcoin's "narrative will shift to bearish" as "spot holders will begin to liquidate their positions due to fear or price drops," implying that Bitcoin may fall below $25000.
CubicAnalytics founder Caleb Franzen pointed out in an X post that the upward trend of Bitcoin starting from a rebound of $25000 has broken and may retest lower levels.
He said that BTC may find support at the upper limit of the downward trend since the summer, otherwise it may further fall to $24000- $25000. Although it may decline in the short term, Bitcoin may rise in the long run. Paul Tudor Jones, a billionaire investor, said on CNBC that he likes gold and bitcoin in view of the wide geopolitical risks and the rising US debt level and interest payments.
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