Contents<\/p>\n
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- A global rise in bond yields\u00a0 \u00a0<\/a><\/li>\n
- A long-term look<\/a><\/li>\n<\/ul>\n<\/div>\n
Bitcoin<\/a>, the largest digital asset by market capitalization, could be on the cusp of another major drop.\u00a0<\/p>\n
With the flagship cryptocurrency recently extending its losses and marking its worst performance since November 2022, analysts and investors are closely monitoring key levels of support and resistance.<\/p>\n
A recent observation from cryptocurrency analyst Ali, known as @ali_charts on the X social media platform, indicates<\/a> that if Bitcoin loses its support at $25,400, it could see a further dip to as low as $22,650 or even $20,590.<\/p>\n
On the flip side, Ali notes that the cryptocurrency would need to breach and hold above the resistance level at $28,830 in order to signal a bullish reversal.\u00a0<\/p>\n
A global rise in bond yields\u00a0 \u00a0<\/h2>\n
These developments come against a backdrop of a global rise in bond yields, which traditionally deter dip buying in riskier assets such as cryptocurrencies, Bloomberg reports<\/a>. Bitcoin, which recently traded close to a two-month low at approximately $26,000, reflects this broader sentiment.<\/p>\n
As borrowing costs anticipate staying high for an extended period, it dampens demand for volatile investments across the board, from stocks to digital currencies.<\/p>\n
Further compounding Bitcoin’s shaky position are global economic conditions. Longer-term U.S. Treasury yields are touching multi-year highs.<\/p>\n
Such an economic landscape predicts limited liquidity, which could be detrimental for riskier assets such as the bellwether cryptocurrency.<\/p>\n
A long-term look<\/h2>\n
- A long-term look<\/a><\/li>\n<\/ul>\n<\/div>\n