After testing above $87,000, Bitcoin has retreated and continues to trade in the $82,000-$85,000 range.
While it remains to be seen whether the uptrend will continue, Glassnode points to the $84,000-$85,000 range as a potential target.
Critical Resistance Zone in Bitcoin!
According to Glassnode analysis, Bitcoin is facing resistance in the $84,000-$85,000 range, where long-term investors are most concentrated.
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At this point, Glassnode, in its analysis from account X, stated that for the uptrend to gain strength, it is important for Bitcoin to surpass the $84,000-$85,000 region and hold above these levels.
Glassnode also notes that if Bitcoin breaks above the aforementioned $84,000-$85,000 resistance zone, the next key level to watch is the MVRV price, which is around $96,700.
Conversely, Glassnode notes that if $BTC falls below $84,000, the $77,000 level will regain importance as a key support level.
Do Bond Yields Mean a Decline for Bitcoin?
In addition to Glassnode’s analysis, Markus Thielen, founder of 10x Research, also analyzed US Treasury bond yields, which he believes triggered the decline in Bitcoin.
Speaking to Coindesk, Markus Thielen stated that a rise in the US 10-year Treasury yield to 6% does not necessarily mean it will harm Bitcoin.
At this point, Thielen makes a distinction based on the reasons why bond yields are rising.
FED Policy Plays a Critical Role!
According to Thielen, if the rise in US 10-year Treasury yields to 6% stems from concerns about fiscal deficits and government debt, it may not necessarily be negative for $BTC. The analyst suggests that this could lead investors to alternative assets and increase demand for $BTC.
In response, Thielen notes that if the rise in bond yields is due to the Fed’s interest rate hikes, it could put pressure on Bitcoin. He recalled that Bitcoin lost approximately 64% of its value during the Fed’s aggressive interest rate hikes in 2022 and warned that similar downward pressure could reappear if the Fed continues with aggressive interest rate increases.
*This is not investment advice.