Bitcoin Faces Downward Pressure as US Bond Yields Surge

The US economy is under strain as government bond yields surge upward, impacting the global market and sending Bitcoin down to important support at $76K. The US 10-year bond yield broke a 19-year trendline on Monday, hitting above 5% for the first time in nearly two decades.

According to technical analysis, if this support fails, the price could quickly fall to the low $70K area. However, there is hope that the yield could begin to soften over the next few days and weeks, as a double top has just been made on the chart and the Stochastic RSI indicators have reached their top limit.

From a technical perspective, a head and shoulders pattern has formed, with the right shoulder completing at $79,600. The measured move to the downside is approximately in line with the 200-day simple moving average, which sits around $69K-$70K, a strong support level.