Bitcoin Still Searching for the Bottom; BTC Price Prediction
Bitcoin is still in bearish territory but could get some help this week from Fed rate cut hopes and holiday shopping.
Quick overview
- Bitcoin has struggled to recover after a failed attempt to break the $90K resistance, currently hovering around $86,600.
- The cryptocurrency has seen a decline of 0.98% in the last day and 5.4% over the past week, with predictions suggesting it may drop to $85K or lower.
- Despite potential boosts from Black Friday and Cyber Monday, mixed technical signals indicate a continued bearish trend for Bitcoin.
- Market sentiment remains poor, and while a rate cut from the Fed is anticipated, it may not significantly impact Bitcoin's price movements.
After attempting a push to $90K on Monday, Bitcoin (BTC) has continued to drop and is not getting much help from investors to recover its losses.
Few investors seem interested enough to buy the dip on Bitcoin right now as it hovers near $86,600 (BTC/USD). The coin has fallen 0.98% over the last day and 5.4% for the last week. BTC briefly tested the $90K resistance level this week and was pushed down quickly from there.
BTC/USDIt appears that BTC may be headed to $85K and below this week, even with the profitable Black Friday shopping sprees potentially lifting markets. Other cryptocurrencies have pulled back as well, including Ethereum (ETH) and Solana (SOL), which were climbing earlier this week but are now bearish.
Where Is Bitcoin Headed Now?
There are mixed technical signals for Bitcoin, and even though the wider trend right now is for the coin to remain bearish, it could be lifted by strong economic signals over the weekend. With Black Friday and Cyber Monday looming, Bitcoin may get a push that helps it move past the current resistance level and break out of its slump.
This year has been marked by large market swings, and Bitcoin has struggled to maintain gains and keep up momentum. The coin could receive a boost from talks of a December Fed rate cut, but then again, that may not faze the coin at all. The market expects a rate cut soon, with market sentiment pegging it at 85% certainty, but Bitcoin has not been affected by economic factors this year in the way that the market always anticipates.
When the last rate cut was enacted, on October 29th, Bitcoin fell unabated from $113K to $111K. The coin barely moved on the previous cut on September 17th as well, as the coin shifted from a price of $116K to $117K that day. What this means is that investors should not expect this next rate cut, if it does happen, to move Bitcoin at all and certainly not to help it along.
For now, bearish conditions are expected, but we could see a wild swing from the crypto market over the weekend. Because many exchanges will be pushing deals and making special offers, that could be enough to pull Bitcoin back from its slump. At the same time, market sentiment may be so poor for Bitcoin for now that it will continue to decline until it finds the bottom. We could see a surge past $90K or a dip that brings the coin close to $80K. Expect the coin to settle into that range through the weekend.
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