Bitcoin Price Drops as US Treasury Yields Surge
- Yield Surge Impact: On May 20, the 30-year US Treasury yield hit 5.197%, the highest since July 2007, causing Bitcoin prices to drop 4-6% within 24 hours and triggering approximately $100 million in crypto liquidations, indicating a significant reduction in risk appetite among investors in high-beta assets.
- Market Reaction: This rise in yields extended Wall Street's losing streak to three consecutive sessions and dragged down Asia-Pacific equities, as investors reassessed the Federal Reserve's prolonged high-rate stance amid persistent inflation and renewed geopolitical tensions affecting market sentiment.
- Liquidity Pressure in Crypto: As long-term yields climb, the implied hurdle rate for holding Bitcoin increases, leading investors to shift towards Treasuries, while a stronger dollar historically poses challenges for Bitcoin, exacerbating liquidation pressures in the crypto market.
- ETF Outflow Signal: Bitcoin ETF data revealed the first net outflows in two weeks, indicating that institutional investors are less inclined to hold Bitcoin due to rising rates, suggesting that demand for Bitcoin may face resistance, potentially leading to further price declines.
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Technical Analysis for FLOW
Technical Sentiment Analysis for Flow (FLOW). As of , Flow (FLOW) is exhibiting a Neutral technical sentiment. Our proprietary analysis, which aggregates 5 technical signals, shows that 2 indicators are flashing buy, while 3 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status. Currently, the Relative Strength Index (RSI) for FLOW stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the crypto.
Support, Resistance & Moving Averages. From a structural perspective, FLOW is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
Flow (FLOW) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 0.0273 | 0.0301 | 0.0327 | 0.0355 | 0.0381 | 0.0408 | 0.0435 |
| Fibonacci | 0.0301 | 0.0321 | 0.0334 | 0.0355 | 0.0375 | 0.0388 | 0.0408 |
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