Bitcoin Dips Below $90k as Market Conditions Remain Choppy

TL;DR

• BTC is trading below $90k after losing 1% of its value in the last 24 hours.

• The market remains choppy ahead of key macro economic events this week.

Bitcoin Slips to $89k

The cryptocurrency has begun the new week bearish, thanks to its choppy price action in recent weeks. Bitcoin, the leading cryptocurrency by market cap, has lost 1% of its value in the last 24 hours and is now trading at $89,634 per coin.

The bearish performance comes amid strong price consolidation in recent weeks. However, analysts believe that bitcoin’s consolidation could turn lower if key technical levels fail.

The current strong support level stands at $86k. If Bitcoin continues to hold above that level, it could rally higher in the short to medium term. However, failure to defend that support level could see Bitcoin experience a deeper pullback over the next few weeks. 

The bearish performance comes as the market prepares for a week of heavy macroeconomic events. In the  United States, investors are keeping an eye on several employment indicators, including the unemployment rate, ADP employment data and weekly jobless claims, alongside November inflation data, December flash PMI readings, and speeches from Federal Reserve Governors Stephen Miran and Christopher J. Waller. These events could give investors clues on the path of interest rates.

In addition to that, traders are also keeping a close eye on developments in Japan, with the Bank of Japan (BOJ) expected to raise interest rates at its upcoming policy meeting on Thursday. The BOJ is expected to raise the rate to 0.75% after Governor Kazuo Ueda signaled that inflation has remained above the central bank’s 2% target for the past three years. 

For now, the cryptocurrency market remains range-bound, with poor trading volumes and limited convictions affecting the price action. The economic data later this week could shape Bitcoin’s price action over the next few days.