Key takeaways
- BTC is trading below $87k, down less than 1% over the past 24 hours.
- The leading cryptocurrency could test resistance near $93k in the short term.
Bitcoin support at $83k remains
Bitcoin briefly slipped below $84k on Tuesday but rebounded and is now trading above $86k per coin. The drop comes amid challenging macroeconomic conditions driven by tighter global liquidity, while confidence in crypto has also been dented following the Yearn hack.
Analysts expect Bitcoin could face further downward pressure 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 continues to dominate market sentiment.
Tighter monetary policy and uncertainty from the Bank of Japan, along with moves by the U.S. Federal Reserve, continue to weigh on Bitcoin and the broader crypto market.
“Volatility spiked in response. BTC’s 30-day volatility rose from 46% to 50% within 24 hours, while skew collapsed from -5% to -8% before recovering slightly to -6% at the time of writing. The move reflects aggressive demand for downside protection as traders reprice for further weakness,” Forster added.
Options market data shows about 15% of traders expect Bitcoin to fall below $80k by year-end. Conversely, roughly 21% remain bullish, forecasting BTC will finish the year above $100k.
BTC eyeing $93k resistance
The 4-hour BTC/USD chart has shown a recent pullback, with Bitcoin underperforming over the past five days. Technical indicators have softened but could turn bullish if BTC breaks above the $93k resistance level.
At the time of writing, BTC trades around $86,882 per coin. If the recovery continues, Bitcoin could climb toward the $93k resistance within hours or days.
A 4-hour RSI reading of about 40 suggests the downward trend is losing momentum, as BTC is no longer in oversold territory.
If bears regain control, however, Bitcoin could retest the $80k low set on November 21.