On Wednesday, after the yield on 10-year US Treasury bonds soared to 4.64%, the financial markets experienced a downward pressure in trading, causing concern among investors who were already worried about the prospects of interest rate cuts in 2024.
According to Bitpush data, the bullish momentum of Bitcoin stalled at $68,860 in early trading and was then overtaken by bears, with BTC falling to a daily low of $67,100 after the US stock market closed. At the time of writing, the trading price of Bitcoin was $67,501, with a 24-hour decline of 1.52%.
Secure Digital Markets analysts stated, “As expected, Bitcoin continues to pull back towards the 20-day moving average around 66,500. Currently, the support range of 65,000-66,000 remains strong. However, as long as the US dollar index and 10-year yield trend upward, we expect risk assets to continue to be under pressure.”
Altcoins experienced a general decline, with most of the top 200 altcoins in terms of market capitalization experiencing losses, except for a few meme tokens that saw price increases.
DOGGOTOTHEMOON (DOG) led the gains with a rise of 47.2%, followed by cat in a dogs world (MEW) with a 15.6% increase, and Arkham (ARKM) with a 10% increase. ConstitutionDAO (PEOPLE) experienced the largest decrease with a decline of 16.3%, followed by BinaryX with a 16.2% decrease, and Bonk (BONK) with an 11.8% decrease.
The overall market capitalization of cryptocurrencies is currently $2.53 trillion, with Bitcoin’s market share at 52.6%.
In the US stock market, the rise in US Treasury bond yields continues to put pressure on the market. At the close on Wednesday, the S&P 500 index, Dow Jones index, and Nasdaq index all fell, with declines of 0.74%, 1.06%, and 0.58% respectively.
Long-term Bitcoin holders are once again accumulating coins since December last year.
Glassnode data shows that long-term Bitcoin holders (LTH), after selling off for several months, have started accumulating coins for the first time since December 2023.
In a recent report, Glassnode stated, “Bitcoin is currently slightly below its all-time high and continues to consolidate. Long-term holders have started accumulating Bitcoin for the first time since December 2023.”
Analysts pointed out that the spending pressure of long-term holders has significantly decreased in the past week, and investors have returned to accumulation mode. This indicates that volatility is a necessary condition for triggering a new round of sell-offs.
It is worth noting that Glassnode observed that Bitcoin’s price movement in the past three months has been more moderate compared to previous bull market cycles. In the past three months, Bitcoin’s weekly, monthly, and quarterly gains have exceeded 3.3%, 7.4%, and 25.6% respectively. However, in the past 90 days, only 5 days had gains exceeding 3.3%, 7.4%, and 25.6%.
Analysts added, “In previous cycles, this number ranged from 18 to 26 days, indicating that the current market may be more cautious compared to historical bull markets.”
Short-term weakness followed by a peak
Although most analysts expect Bitcoin’s consolidation to continue in the short term, a Twitter poll showed that as the market enters the golden period after Bitcoin’s halving (historically, Bitcoin prices have been on an upward trend), calls for a bullish breakthrough rebound are becoming more frequent.
Market analyst Rekt Capital pointed out that Bitcoin “continued to decline after failing to reclaim the orange area as support” and that there are signs that this orange area has turned into a new resistance level.
However, subsequent articles provided some perspectives that indicated Bitcoin has had similar periods of weakness before breaking through highs.
Cryptocurrency trader Jelle warned that volatility may remain high in the coming months and encouraged other traders to “not be influenced.”
Market analyst Moustache pointed out the possible formation of a “descending broadening wedge,” which suggests that Bitcoin may break through $88,000 in the next few months.
Author: BitpushNews Mary Liu