Bitcoin’s price has experienced significant volatility since the beginning of December, with a nearly 8% drop recorded on Monday to around $84,000. It has since slightly recovered and is currently trading near $85,456. The world’s largest digital currency now hovers around the critical $85,000 level, which will determine whether its price stabilizes or falls further in the coming weeks. Over the past two months, Bitcoin’s value has steadily declined by approximately 30% from its October all-time high. In the last 24 hours, its price fluctuated between $83,800 and $91,866 due to low liquidity and increased forced liquidations in the market. Key support levels stand at $85,000 and $84,000; if these fail to hold, the price could drop to $75,000, with further support expected between $72,000 and $69,000. Continued selling pressure may even push the price down to $57,700.
Experts note that November’s monthly candle ended the previous three months of positive performance, confirming a bearish trend in the market. This trend suggests that Bitcoin is approaching the potential peak of its four-year cycle. In the short term, the price may move within a limited range as bears consolidate, while bulls attempt to push it to $91,400 and $94,000. However, overall bearish pressure remains, prompting investors to exercise caution. The upcoming U.S. Federal Reserve meeting could also influence Bitcoin’s price. Markets anticipate a possible interest rate cut, which might support risk assets and boost Bitcoin’s price. Conversely, if rates remain unchanged, further bearish momentum could ensue.
Bitcoin-related companies are taking various measures to stabilize the market. For instance, MicroStrategy has established a financial reserve for its Bitcoin holdings to reassure investors that it will not be forced to sell large amounts of Bitcoin. Meanwhile, major institutions like BlackRock and JPMorgan are increasing their investments in Bitcoin. Despite the recent price of approximately $85,456 being significantly lower than the October record high of $126,000, Bitcoin continues to hold a prominent position as a leading cryptocurrency in the market.
Source: bitcoinmagazine
