Bitcoin’s Battle for Stability Amid Financial Shifts

Bitcoin‘s price struggles to regain the $88,000 level as former President Trump prepares to address the nation. Trump is expected to soon announce his decision on the Federal Reserve chair, a topic he recently discussed with Federal Reserve Governor Waller. Meanwhile, a seasoned crypto forecaster continues to advocate for their bearish stance, suggesting that a major downturn in altcoins could become a reality if their predictions hold true.

How Are Global Economic Factors Affecting Bitcoin?

Recent events, such as a high court decision reclassifying cryptocurrency reserve companies as funds and potential interest rate hikes in Japan, are anticipated to exert a negative influence on the crypto market in the coming month. Japan is set to announce its decision on Friday, coinciding with the release of the U.S. inflation report later this week.

What Are Experts Saying About the Current Crypto Market?

In the midst of these uncertainties, the risk appetite in the crypto market has diminished significantly. As anticipated, Bitcoin has lost its $88,000 support level. Roman Trading, a notable figure, had previously predicted a minor rebound from recent lows, which has now occurred. The crypto expert reiterated his projection of a $76,000 target for Bitcoin today.

“Bullish waves emerged + volume was low during the decline. I predicted this bounce perfectly. However, I don’t believe this will lead to anything significant. In the near future, Bitcoin (BTC) will reach $76,000.”

Mark Cullen foresees that the short liquidity above $95,000 will soon be exhausted. This implies a potential $8,000 increase from the current levels, with a smaller short clearing expected around $83,000. Should this scenario occur, it could elevate the spot prices above $98,000.

This technical assessment backs up his forecasts. Mark’s analysis identifies the need for Bitcoin to establish a higher low, though further pullback to late November lows might occur as market pressures persist.

“With yesterday’s sell-off, BTC reached the Fib golden zone of the upward movement. I’d like to see a bounce and a higher low from here, but as the pain persists, we’re likely to revisit the lows from late November.”

The upcoming U.S. inflation data on Thursday and Japan’s interest rate announcement on Friday are poised to affect cryptocurrencies in the near term. This aligns with Mark’s forecast of a short-term downturn.

Amidst the complex landscape, Bitcoin’s journey remains fraught with challenges, shaped by economic policy shifts and expert analyses that predict significant market movements in the foreseeable future.