Bitcoin Plummets 3,000 Points Amid High Interest Rate Environment
The Bitcoin market experienced a sharp pullback yesterday, with BTC falling by around 3,000 points from its highs to consolidate weakly around 84,000. The Ethereum market also declined, with ETH dropping about 150 points in tandem.
The high interest rate environment, as indicated by the yield on US Treasuries and the Federal Reserve's hawkish stance, continues to put pressure on the valuations of risk assets such as BTC and ETH. However, the market has not entered a panic state, with the Fear & Greed Index remaining in the 'Greed' area.
The mid-term structure remains strong for both Bitcoin and Ethereum, but short-term indicators are showing signs of correction. For BTC, the 4-hour RSI has retreated from overbought territory, indicating cooling bullish momentum.
Market analysts recommend watching for buying opportunities around 83,000-83,500 for BTC and key resistance at 85,000-85,500 on any rebound. If support around 83,000 continues to hold, this pullback can be treated as a normal correction after an uptrend.