Bitcoin faces mounting pressure as it joins U.S. stocks in a sharp decline, described by analysts as a “bearish overreaction” to better-than-expected employment data. BTC now hovers near critical support at $88,000, with fears of further downside unless a strong rebound occurs.
Analyst Charles Edwards highlighted similarities to the March 2020 COVID-19 crash, noting an “insane intraday put-call ratio” reminiscent of the market panic during that time. Edwards and others suggest the market’s reaction may have been excessive, with potential for a near-term bounce.
Meanwhile, expectations for a Federal Reserve rate cut remain low, with CME Group’s FedWatch Tool indicating a 6.4% probability, up from 2.7% the day prior. Despite the positive unemployment report, treasury yields are under scrutiny, with cracks appearing in the system.
Crypto trader Michaël van de Poppe observed that treasury markets are reaching a tipping point, predicting an upward trend for Bitcoin and altcoins within 10-15 days. However, Bitcoin’s performance must improve significantly to avoid a prolonged downtrend as markets await clarity.
Source: Cointelegraph
