Bitcoin continued to weaken over the past 24 hours, falling to $78,564.71 and breaking below the $79,000 mark. Stronger-than-expected U.S. employment data, coupled with rising yields on U.S. Treasury bonds, put pressure on risk assets in general, and the crypto market was also dragged down as a result.
Macroeconomic data suppresses risk appetite
The market generally links this round of decline to the latest U.S. economic data. Strong employment performance means that the market's re-pricing of interest rate paths has intensified, driving up yields on U.S. Treasuries and also reducing the short-term attractiveness of high-volatility assets.
Against this backdrop, Bitcoin failed to hold its previous rebound range, and selling pressure at higher levels reappeared. The price encountered resistance near $80,500, followed by a decline, indicating that the upward selling pressure still exists.
Long liquidation increases selling pressure
In addition to macroeconomic factors, adjustments to leveraged positions also amplified the extent of the decline. Reports mentioned that leveraged long positions were liquidated, further exacerbating the selling pressure in the market and causing prices to plummet rapidly in a short period of time.
At the same time, large holders who hold positions for a short period still have approximately $9.07 billion in unrealized profits. This means that if the market continues to weaken, some of these profit-taking positions may be further liquidated, putting additional pressure on the short-term trend.
$78,000 becomes a short-term observation level
From the current price range, $78,000 is considered an important short-term support level. If this level is breached, Bitcoin could fall to around $77,200 next; if it holds this level, the price may enter a period of consolidation with fluctuations.
The next key time point to watch in the market is September 11th. On that day, the United States will release the data for August CPI, which is considered an important macroeconomic variable that will affect the trend of risk assets in the coming phase.
- 24-hour decline: 1.55%
- Latest price: $78,564.71
- Near-term resistance level: $80,500
