No miracle on the horizon for Bitcoin, even with Trump's swearing-in in the sights. Right now, the flagship crypto is displaying behavior as unpredictable as political speech. Despite an American economy which is doing rather well, BTC seems to have difficulty digesting the employment figures. What do the experts say? And above all, can the crypto market still hope for a recovery?
Bitcoin teeters below $95,000
After briefly touching $92,000 before rising again, the price of bitcoin is stuck in volatility to cut with a knife. A reaction described as “bearish” by several analysts, completely out of step with the good American employment figures.
Charles Edwards, founder of Capriole Investments, laughs:
“Markets panic in the face of good news. However, this data could extend the bull run longer than expected.»
Concern is growing, because a return of Bitcoin below $90,000 could be catastrophic:
- The crypto market's weekly RSI is on the edge of its support channel, a critical warning signal;
- A fall below $88,000 would result in a general decline of 5 to 10% in the crypto market;
- Investors are expecting a quick recovery before the end of the week to avoid a prolonged decline.
The memory of March 2020 crash hovers over minds. However, some optimists see this turbulence as an opportunity.
The next few days will be decisive in deciding between rebound and downward spiral.
Crypto market: when the economy acts up
It's not just bitcoin that's on the roller coaster ride. All the crypto market finds itself caught in an economic vise. Bond yields are reaching worrying highs, and markets are now anticipating even more restrictive monetary policy from the Fed.
Michaël van de Poppe, a well-known analyst, tempers:
“The system is cracking, but an upward trend could emerge within two weeks.»
Despite these alarming signals, several elements show that the market has not yet said its last word :
- The current volatility, while worrying, creates buying opportunities for patient investors;
- Altcoins are showing signs of resilience and could outpace Bitcoin in the next rebound;
- The chances of the Fed cutting rates in January remain low but not zero, offering a glimmer of hope.
However, the shadow of a brutal adjustment still looms. If price consolidation fails in the short term, the market could enter a new bearish phase.
Furthermore, Grayscale wants to be reassuring: despite the strength of the dollar and a restrictive monetary policy weighing on the crypto market, experts speak of a bullish future. Patience remains essential for investors looking for a rebound.
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