Last week, Bitcoin experienced significant volatility, initially dropping to a support level of $84,000 before buyers pushed the price up to the resistance level of $94,000. Subsequently, the price declined again, falling slightly below $88,000 on Sunday morning, but closed the week at $90,429. Market participants are now closely watching Wednesday’s Federal Open Market Committee (FOMC) meeting, where a potential interest rate cut is expected. Such a move could improve the investment climate and likely increase the value of Bitcoin and other assets.
Technically, Bitcoin ended the week with a ‘Doji’ candlestick pattern, indicating uncertainty between buyers and sellers. The short-term trend favors buyers who will attempt to break through the $94,000 resistance. If this level is breached and holds as support, the next target would be $101,000, where further resistance is anticipated. Beyond that, prices could face resistance between $104,000 and the $107,000 to $110,000 zone.
On the downside, maintaining a close above $87,200 would support buyers and prevent a retest of the $84,000 support level. Repeated tests of this support could weaken it and increase the risk of a decline. A strong support zone lies between $72,000 and $68,000, with an additional Fibonacci retracement level at $57,700 providing further support below that.
At the start of this week, technical indicators such as the Relative Strength Index (RSI) have shown positive momentum by rising above 60, signaling bullish conditions. Should the FOMC announce a rate cut, Bitcoin’s price is expected to rise; otherwise, the $84,000 support may be at risk.
Overall, the market sentiment remains bearish despite some gains over the past two weeks. The monthly MACD oscillator’s bearish crossover continues to exert downward pressure, suggesting price stabilization or decline through December and January. Failure to surpass the $110,000 resistance would indicate a lower high, reinforcing a longer-term bearish outlook.
Global financial policies, particularly the US Federal Reserve’s interest rate strategy, play a critical role in influencing Bitcoin’s price. A rate cut would likely expand investment opportunities and boost demand for cryptocurrencies.
Source: bitcoinmagazine
