Key takeaways
- BTC is trading below $87k, down by less than 1% in the last 24 hours.
- The leading cryptocurrency could retest the $93k resistance level in the near term.
Bitcoin’s $83k support holds
Bitcoin briefly dropped below $84k on Tuesday but has bounced back and is now trading above $86k per coin. The bearish performance comes amid macroeconomic conditions due to global liquidity tightening, and confidence in crypto is also deteriorating further following the Yearn hack.
Analysts predict that Bitcoin’s price could suffer further bearish movements as we head into the last few weeks of the year. In an email to Coinjournal, Nick Forster, Founder at the onchain options platform, Derive.xyz, said that macro uncertainty continues to dominate.
A BOJ tightening and ambiguity around a U.S. Fed cut continue to negatively affect Bitcoin and the broader cryptocurrency market.
“Volatility surged in response. BTC 30-day volatility jumped from 46% to 50% in the past 24 hours, while skew collapsed from -5% to -8% before recovering slightly to -6% at the time of writing. The move reflects aggressive demand for downside protection as traders reposition for further weakness,” Forster added.
The options market shows that 15% of traders predict Bitcoin’s price will drop below $80k by the end of the year. However, 21% are still optimistic about Bitcoin ending the year above $100k.
BTC eyes the $93k resistance
The BTC/USD 4-hour chart is bearish and efficient as Bitcoin has underperformed over the past five days. The technical indicators are also bearish but could switch bullish if Bitcoin tops the $93k resistance level.
At press time, BTC is trading at $86,882 per coin. If the market recovery continues, BTC could rally towards the $93k resistance level over the next few hours or days.
The 4-hour RSI of 40 shows a fading bearish trend as Bitcoin is no longer in the oversold area.
On the flipside, if the bears regain strength, Bitcoin could retest the $80k low created on November 21.