Bitcoin Retreats from $90K; New BTC Price Prediction
Quick overview
- Bitcoin briefly reached $90,000 but quickly fell back to around $87,153, disappointing investors.
- The recent 5% decline has lowered market expectations for Bitcoin, making it less likely to surpass the $90K barrier soon.
- Despite some positive whale purchases, selling pressure remains high, suppressing investor confidence.
- Relaxed cryptocurrency regulations may eventually improve market sentiment and accessibility for new investors.
For less than an hour on Wednesday morning, Bitcoin (BTC) hung near $90,000 but then swiftly fell back to $86K in a disappointing turn of events for hopeful investors.
Bitcoin suffered from weak busying support as it hit $90K briefly yesterday. Now, the coin is back down to $87,153 (BTC/USD). There is some positive with the latest move, though, as Bitcoin is now 0.13% above where it was the previous day.
BTC/USDIt looks like the $90K level is still going to be a struggle for BTC, however and this latest retreat could be enough to increase selling support and diminish investor confidence in the crypto market and particularly Bitcoin.
The Latest 5% Swing Sets Low Expectations for Bitcoin
The recent drop of around 5% for Bitcoin has lowered the bar for what the market expects from this cryptocurrency token. After institutional buyers outpaced individual investors for Bitcoin earlier in the week, analysts expected Bitcoin to start to surge. But when that surge was short-lived and could not break through the $90K barrier, market sentiment shifted.
Now it seems less likely that Bitcoin will be able to move above $90K anytime soon. The upcoming CPI data and jobs report may help, but they are not likely to move the needle very much for Bitcoin. We anticipate that BTC will remain low for a while and will struggle to overcome the $90K level. Even recent whale purchases from Strategy and other major investors has not helped reduce the selling pressure by much. Bitcoin looks to be stuck in a cycle of sluggish momentum occasionally broken by attempts to break through to the $90,000 mark.
The coin has proven over the past few weeks that it simply cannot hold onto its gains, and that suppresses investor excitement and gives crypto holders little incentive to buy into the coin. The 5% retreat may prove to be a temporary setback only, though, if the coin can continue to garner support from whale investors and regulators continue to make cryptocurrency more accessible.
Recently relaxed rules on cryptocurrency from the Federal Reserve as well as the Securities and Exchange Commission make it easier for banks and other institutions to offer their clients access to cryptocurrency accounts. We could see market sentiment shift quickly before the end of the year as the market opens up to more investors who have been kept back by strict federal policies.
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