The greatest digital asset by market capitalization, bitcoin, may be about to experience another significant decline.
Analysts and investors are keenly watching key levels of support and resistance for the leading cryptocurrency because recent losses have increased and the asset has performed poorly for the first time since November 2022.
According to a new discovery by cryptocurrency analyst Ali, also known as @ali_charts on the X social media platform, Bitcoin might go even further to as low as $22,650 or even $20,590 if it loses support above $25,400.
On the other hand, Ali points out that for the cryptocurrency to indicate a positive turnaround, it would need to breach and maintain above the resistance level of $28,830.
A global rise in bond yields
According to Bloomberg, these changes take place against a backdrop of rising bond rates throughout the world, which typically discourage dip purchasing in riskier assets like cryptocurrencies. This general mood is reflected in Bitcoin, which recently traded close to a two-month low at about $26,000.
The expectation that borrowing rates would remain high for a considerable amount of time reduces demand for volatile assets in general, including equities and virtual currencies.
additional compounding Global economic realities are to blame for Bitcoin’s precarious status. U.S. Treasury rates on longer terms are at multi-year highs.
Limited liquidity is predicted by such an economic environment, which might be harmful for risky assets like the leading cryptocurrency.
A long-term look
Nevertheless, several industry experts have a bright outlook for the long-term prospects of cryptocurrencies despite the cautious environment. The two-year moving average multiple for Bitcoin stays inside the DCA (Dollar Cost Averaging) value range, according to Josh Olszewicz, a prominent player in the cryptocurrency trading industry. The 5x multiplier of this moving average is impressively at a mind-blowing $168,000 right now.
This number may climb if Bitcoin starts to rise in the upcoming months, which would be good news for cryptocurrency aficionados.
