Bitcoin (BTC) Holds Up Amid Bond Market Sell-off...Battle to Defend $78,000

▲ Bitcoin (BTC)/AI Generated Image

Bitcoin (BTC) held around $78,000 despite a global bond market sell-off.

According to Cointelegraph on September 1 (local time), Bitcoin failed to establish a clear direction around $78,000 at the end of August. At the same time, long-term US Treasury yields again threatened their highest levels in approximately 20 years. Bitcoin did not lead to a sharp sell-off even amid growing instability in the US bond market.

In the bond market, the sell-off in long-term bonds was fierce. As the yield on 30-year US Treasury bonds approached long-term highs, concerns grew over fiscal burden and increased bond supply. Bitcoin saw an intraday rebound when US Treasury Secretary Scott Bessent hinted at the possibility of further action to stabilize the long-term bond market. However, the upward trend in bond yields itself did not break.

After a strong rebound in August, Bitcoin is also testing important technical support levels. The 50-week exponential moving average was presented at $77,269. Bitcoin maintained this price as a support level, but a hidden bearish divergence was detected in the Relative Strength Index (RSI). To continue its August rally, Bitcoin must overcome both the burden of long-term bond yields and technical bearish signals simultaneously.

Bond market instability also spread to the stock market. The S&P 500 and Nasdaq Composite showed weakness amid renewed tensions between the US and Iran. Coupled with uncertainties surrounding the Federal Reserve's (Fed) interest rate path, the burden on risk assets as a whole increased. Whether Bitcoin can maintain the $78,000 level despite the surge in bond yields emerged as a key market observation point in early September.

[Article Key Summary]

-Bitcoin maintained around $78,000 at the end of August despite the global bond market sell-off.

-The yield on 30-year US Treasury bonds threatened its highest level in approximately 20 years, increasing interest rate burden on risk assets.

-Bitcoin defended the 50-week exponential moving average of $77,269, but bearish signals were detected in the Relative Strength Index.

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