Key points
- BTC trades below $87,000, down less than 1% in the past 24 hours.
- The leading cryptocurrency could retest the $93,000 resistance level in the short term.
Bitcoin’s $83,000 support holds
Bitcoin briefly dipped under $84,000 on Tuesday but recovered and is now trading above $86,000 per coin. The recent downward movement comes amid tighter global liquidity conditions, and confidence in crypto has been further shaken following the Yearn hack.
Analysts warn that Bitcoin could experience additional downside as we approach the final weeks of the year. In an email to CoinJournal, Nick Forster, founder of on-chain options platform Derive.xyz, said macro uncertainty remains the dominant factor.
Tightening from the Bank of Japan and continued ambiguity around a potential Federal Reserve cut are weighing on Bitcoin and the broader cryptocurrency market.
“Volatility picked up in response. BTC 30-day volatility jumped from 46% to 50% in the last 24 hours, while skew plunged from -5% to -8% before recovering slightly to -6% at the time of writing. The metric reflects aggressive demand for downside protection as traders reposition for further weakness,” Forster added.
Options market data shows around 15% of traders expect Bitcoin to fall below $80,000 by year-end. At the same time, roughly 21% remain bullish, predicting BTC will finish the year above $100,000.
BTC eyes $93,000 resistance
The 4-hour BTC/USD chart currently looks bearish and orderly, reflecting underperformance over the past five days. Technical indicators also lean bearish but could turn bullish if Bitcoin clears the $93,000 resistance level.
At the time of writing, BTC is trading at $86,882 per coin. If the recovery continues, BTC could move toward the $93,000 resistance in the coming hours or days.
The 4-hour RSI at 40 indicates a weakening downtrend, with Bitcoin no longer in oversold territory.
Conversely, if bears regain control, Bitcoin could retest the $80,000 low recorded on November 21.