Bitcoin Drops Under Key Technical Level as Treasury Yields Hit Lowest Since April
Bitcoin (BTC) has slipped below a key technical indicator as the global financial market reacts to declining U.S. bond yields. The world’s largest cryptocurrency is now trading around $108,500, marking a 1.8% decline in the past 24 hours.
Traders are keeping a close eye on the 200-day simple moving average (SMA)—a level widely seen as a long-term support zone. BTC’s move below this line has raised concerns of a potential short-term bearish phase unless the price recovers quickly.
Falling Yields Reflect Market Caution
The U.S. 10-year Treasury yield has dropped to its lowest point since April, signaling rising caution among investors. Lower yields typically suggest expectations of slower economic growth and potential interest rate cuts by the Federal Reserve.
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While easing yields can sometimes boost risk assets like cryptocurrencies, current sentiment appears mixed. Investors seem more inclined toward safe-haven assets, waiting for clearer signs of stability before re-entering high-volatility markets like crypto.
Technical Levels to Watch
Analysts note that Bitcoin’s immediate support lies near $106,000, with stronger support expected around $104,500. On the upside, reclaiming the $110,000 zone could restore confidence among traders.
Despite short-term selling pressure, market experts maintain a constructive long-term view, citing continued institutional inflows, ETF adoption, and steady development within the blockchain ecosystem.
THE CRYPTOCURRENCY MARKET IS HIGHLY ACTIVE, WITH BINANCE’S DAILY TRADES REACHING $80 BILLION.
Outlook: Focus Turns to Federal Reserve Policy
Looking ahead, all eyes remain on upcoming Federal Reserve announcements and inflation data, both of which could set the tone for risk assets in the weeks ahead.
If yields continue to decline and liquidity conditions improve, Bitcoin could regain its footing and attempt another breakout above the 200-day SMA. For now, stability above current levels will be key to avoiding deeper corrections.
