Key takeaways
- BTC trades below $87,000, marking a decline of less than 1% over the past 24 hours.
- The leading cryptocurrency could retest resistance near $93,000 in the near term.
Bitcoin support at $83,000 remains intact
Bitcoin briefly dipped below $84,000 on Tuesday before bouncing back; it is currently trading above $86,000 per coin. The recent pullback comes amid macroeconomic headwinds driven by global liquidity tightening, and confidence in crypto markets has been further shaken by the Yearn protocol hack.
Analysts warn that Bitcoin could face additional downside as year-end approaches. In an email to CoinJournal, Nick Forster, founder of on-chain options platform Derive.xyz, said lingering macro uncertainty remains a dominant factor.
Tighter policy from the Bank of Japan and uncertainty around potential rate cuts by the U.S. Federal Reserve continue to weigh on Bitcoin and the broader cryptocurrency market.
“Volatility has reacted accordingly. 30-day BTC volatility rose from 46% to 50% over the last 24 hours, while skew dropped from -5% to -8% before recovering slightly to -6% at the time of writing. This action reflects aggressive demand for downside protection as traders reposition for further weakness,” Forster added.
Options market data indicates roughly 15% of traders expect Bitcoin to fall below $80,000 by year-end. At the same time, about 21% remain bullish, forecasting that Bitcoin will close the year above $100,000.
BTC faces resistance at $93,000
The 4-hour BTC/USD chart shows a bearish bias, with Bitcoin underperforming over the past five days. Technical indicators are tilted lower, though a break above $93,000 could shift momentum to the upside.
At the time of publication, BTC is trading at $86,882 per coin. If the current rebound holds, Bitcoin could push toward the $93,000 resistance level over the coming hours or days.
The 4-hour RSI sits around 40, indicating the recent downtrend is losing steam and Bitcoin is no longer in oversold territory.
Conversely, if sellers regain control, Bitcoin could retest the $80,000 low established on November 21.