Bitcoin (BTC) has continued to fall over the past three weeks, falling to $25,168 amid rising bond yields and economic changes. The cryptocurrency hit a two-month low of $26,000, down 0.74% in 24 hours and 11% in the past week. Other major digital currencies such as Ethereum and Ripple have also seen sharp declines. Market sentiment towards Bitcoin is mixed with both bearish and bullish sentiment.
Bitcoin Bullish and Bearish Levels
Analysts are keeping a close eye on Bitcoin’s support and resistance levels. @ali_charts on X warns that a break of the $25,400 support level could result in a drop to $20,590. Keith Alan of Material Indicators suggests a drop to $25,000. Both believe that below $25,000, BTC could fall further, possibly to $20,000.
Josh Olszewicz remains optimistic, saying that as long as BTC’s two-year moving average remains positive, it could reach $168,000, offering hope amid the downturn.
The impact of rising bond yields: weakening Bitcoin’s dominance
Rising global bond yields have historically discouraged cryptocurrency investment due to increased risk aversion. This trend, coupled with changing global economic conditions, could lead to tight liquidity and affect riskier assets, including cryptocurrencies.
On the other hand, the legal dispute between Grayscale Investments and the SEC awaiting a ruling adds to regulatory uncertainty. Converting GBTC to a Bitcoin ETF could lead to a bullish trend for BTC.