Bitcoin Buckles Under Pressure: Post-Selloff Defense Mode Ushers in Potential 2022-Style Monthly Meltdown
Bitcoin started the week on the defensive after a protracted selloff that put the token on track for its worst month since 2022.
Quick overview
- Bitcoin is experiencing a significant decline, on track for its worst month since 2022, with a drop of 2.3% over the weekend.
- Despite a slight recovery above $86,000, traders remain cautious and are monitoring the crucial support level at $85,200.
- The broader cryptocurrency market is struggling, even with increasing institutional adoption and favorable policies from the US government.
- Market analysts predict Bitcoin will trade between $80,000 and $90,000 this week as traders await the Federal Reserve's rate decision.
Live BTC/USD Chart
Bitcoin started the week on the defensive after a protracted selloff that put the token on track for its worst month since 2022. The original cryptocurrency dropped as much as 2.3 percent over the weekend, briefly falling below $86,000 on Monday morning before taming losses.
The broader cryptocurrency market is in a severe decline despite growing institutional adoption and several policy victories pushed for by US President Donald Trump, who has embraced the sector
US equity-index futures increased on Monday as hope for interest rate cuts grew. If nothing changes, November will be the worst month for Bitcoin since a series of corporate failures shook the cryptocurrency market in 2022, culminating in the demise of Sam Bankman-Fried’s FTX exchange. Traders are keeping an eye on $85,200 as a crucial support level.
These liquidation flurries often precede bounces if no new shocks hit, technicals and macro headwinds dominate over fundamentals.
Caroline Mauron, co-founder of Orbit Markets, stated, “Early trading is showing slight weakness today, but the moves are fairly small and within normal variations.”. As the market searches for hints regarding the Federal Reserve’s impending rate decision, Bitcoin is expected to trade in the $80,000 to $90,000 range during the week, she continued.
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