Bitcoin price below $28k- analyst says BTC on “knife’s edge”
- Bitcoin price fell to lows of $27,740 across major exchanges on Thursday, the lowest since June.
- Stocks have also slipped after the latest Fed meeting.
- Meanwhile, real yields have jumped to recent highs.
Bitcoin has traded to below $28,000 again, with Thursday’s dip seeing the flagship cryptocurrency’s value hit lows of $27,744 across major exchanges.
The broader crypto market was also shedding gains as top altcoins declined to pull the total crypto market cap down over 3% to $1.15 trillion.
Analyst says Bitcoin on “knife’s edge”
At the time of writing, BTC was trading near $27,915, roughly 3.7% down in the past 24 hours. Bitcoin has lost 5% of its value in the past week and the move to its lowest levels since June has bulls looking at a potential flip even lower.
Christopher Jaszczynski, a crypto trader and analyst going by MMCrypto on X (formerly Twitter), shared the chart below showing Bitcoin price performance. It shows BTC back at a key trendline that has acted as support since early this year. He says the benchmark cryptocurrency is trending at a “knife’s edge.”
#BITCOIN ON KNIFES EDGE 🔪!!!!!! pic.twitter.com/DuzeCMYikW
— MMCrypto (@MMCrypto) August 17, 2023
BTC down as real yields rise
Bitcoin’s slip to below $28k comes as the stock market also witnessed jittery reaction after Wednesday’s Federal Reserve commentary. Market observers say the Fed is likely to see further interest rate hikes as necessary and that has investors on edge.
On Thursday, equities saw lackluster movement as Treasury yields climbed to recent highs.
The US 10-year Treasury yield was 6.6 points up to 4.324% while yield on the US 30-year Treasury lifted 6.1 basis points to 4.42%, tracking highs seen in 2009.
With higher interest rates a negative trigger for risk asset investments such as Bitcoin, fresh bearish moves are likely. Market analyst TXMC shared the below observation as real yields ripped.
$SPX and 10yr Real Yields
Observe how the entire equity run from October to July occurred with real yields capped below their highs, and how each break higher incurred a selloff.
Then observe real yields today relative to said cap. pic.twitter.com/E6cvdQjTkD
— 𝐓𝐗𝐌𝐂 (@TXMCtrades) August 17, 2023
