Throughout the weekend, Bitcoin exhibited a degree of stability. Yet, it is once again challenging the critical support level of $88,000. Recent discussions highlight potential market upheavals linked to Japan’s economic fluctuations, which could greatly influence Bitcoin’s valuation in coming days. Bitcoin currently stands near $88,700 as the week concludes.
Will Bitcoin Breach Key Support?
Repeated attempts to surpass the $94,000 resistance have failed, indicating a potential support breakdown if this trend continues. Investors’ concerns rise amid the possibility of a Japanese interest rate increase expected this Friday, combined with upcoming US employment and inflation figures and an MSCI delisting decision for MSTR slated for January 15th.
Bitcoin has remained confined within a narrow range, hinting at an inevitable breaking point in either direction. Many market participants anticipate a downward move, which could increase volatility. Crypto analyst Tony suggests adopting a cautious stance and recommends taking a position only when Bitcoin surpasses either $90,600 or $89,800 definitively.
Presently, Bitcoin appears to have breached its support barrier. If bearish pressure mounts, the cryptocurrency may experience a dip towards $81,000. Growing trepidation among investors concerning upcoming market events might dampen buying enthusiasm and further challenge bullish efforts to elevate the price.
Could Bitcoin Hit $50,000?
A study disseminated by CryptoQuant stresses a negative pattern characterized by the convergence of declining Simple Moving Averages (SMAs) with prices trading below major trendlines. The present market structure reflects a bearish sentiment with prices positioned beneath critical SMAs.
“Analysis reveals Bitcoin trading under short, medium, and long-term moving averages. Downward trending SMA(7-14-30) and current prices fall below SMA(50-100), highlighting a clear bearish stance. Resale activity around declining moving averages transforms these into active resistance. The rally lacks volume, indicative of feeble purchasing power.”
During the consolidation phase, Bitcoin’s buying activity is notably weak, paralleling Ethereum’s performance. Limited buying interest, with CryptoQuant analysts suggesting Bitcoin’s rally has stalled and possibly targeting a $50,000 future valuation.
“While demand dwindles, it hasn’t disappeared. Ethereum remains robust compared to Bitcoin, though it lacks momentum to confirm a reversal. Compared to Binance charts, Ethereum stands out over Bitcoin. The market hasn’t reached a perilous phase yet. Long-term averages trend down, actions remain below resistance, and volumes fail to support a sustained rise. Presently, Bitcoin’s rally appears halted, anticipating a deeper bear market potentially touching $50,000 before another major upswing.”
