Bitcoin traded near $73,500 on Nov. 11, recovering from the week’s reported low of $72,602. The cryptocurrency remained below the $75,000 resistance area, while a renewed decline beneath $72,600 could expose the psychological $70,000 level.
Meanwhile, spot Bitcoin exchange-traded funds (ETFs) recorded approximately $1.48 billion in net withdrawals between Nov. 2 and Nov. 9. The selling pressure left Bitcoin approaching technical support around $72,600.
US Bond Yields are Soaring After Strong Inflation Data
The Bureau of Labor Statistics reported that employers added 165,000 jobs in October. The unemployment rate edged down to 4.1%, indicating continued labor-market resilience.
The Nov. 6 employment report followed September’s 60,000 job increase. Those figures describe separate months and should not be confused with economists’ forecasts.
Now, there are signs that inflation is stickier than expected. A report released on Tuesday showed that the headline Consumer Price Index (CPI) rose 0.4% in October. Core inflation, which excludes the volatile food and energy prices, also rose at a faster pace than expected.
Therefore, the implication is that the Federal Reserve will hike interest rates in the coming meeting. As the chart below shows, the CME Fed Futures tool hints that the Fed will hike rates by 25 basis points to between 400 and 425 basis points.
Federal Reserve Governor Christopher Waller supported a 25-basis-point rate increase in December. He also said policymakers should consider a 50-basis-point increase if October core inflation reached approximately 0.3% or higher. The subsequent CPI report met that condition, although the Federal Reserve had not made a decision.
Other Federal Reserve officials have also hinted of further hikes. Austan Goolsbee, a top Fed official said that the October CPI was borderline disturbing. Similarly, Federal Reserve’s Anna Paulson said that she would support gradual tightening of rates.
US Bond Yields are Rising
Rising U.S. Treasury yields added pressure to Bitcoin price following the hotter-than-expected inflation report. According to the U.S. Treasury, the 10-year yield reached 4.98% on Nov. 10, while the 30-year and five-year yields climbed to 5.35% and 4.81%, respectively. Higher bond yields can weigh on Bitcoin as investors reassess risk exposure and demand higher returns from speculative assets.
The rising yield likely explain why the Crypto Fear and Greed Index has dropped to the extreme fear zone. At the same time, spot Bitcoin ETF outflows have continued rising in the past few days .
Spot Bitcoin ETFs shed over $95 million on Tuesday after losing $201 million on Monday. In total, these funds have lost over $1.5 billion this month, more than triple the $505 million they lost last month. Rising Bitcoin ETF net outflows indicate weaker demand for the funds this month, although redemptions alone do not establish investors’ reasons for selling.
ETF outflows have risen after the US midterm elections, in which Americans voted against Donald Trump and the Republican party.
Bitcoin Price Forecast: Technical Analysis
On the charts, BTC price has been in a strong sell-off in the past few weeks. It dropped from a high of $87,365 in September to a low of $72,602. The coin has slumped below the 38.2% Fibonacci Retracement level of $76,078.
Bitcoin has remained below the Supertrend indicator. Also, the MACD indicator has continued falling and is below the zero line. Therefore, the coin will likely continue falling, potentially to the key support level of $70,000. This view will be confirmed if it drops below this week’s low of $72,600.
On the other hand, a move above the key resistance level of $75,000 will invalidate the bearish forecast.
This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets involve substantial risks. Readers should independently verify market data before making investment decisions.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
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Disclaimer. Informational only, not financial advice. Crypto, forex and stocks are volatile, high-risk assets — always do your own research and consult a qualified adviser.
