Bitcoin (BTC) has experienced a significant decline, falling to a seven-month low below $90,000, with BTCUSD hitting 89,270, marking a drop of approximately 30% from its October peak. This sell-off is attributed to shrinking liquidity, institutional derisking from ETFs and corporate treasuries, and fading expectations for a December U.S. rate cut, which dampened risk appetite amid cooling tech stocks.
Analysis firm MakroVision highlighted that Bitcoin has failed to break above a prominent red trend line for months, leading to increased bearish pressure. They emphasized that a rapid recovery above the 0.618 Fibonacci level at $95,900 is crucial for renewing upward momentum, while reclaiming $102,000 is essential to temper the decline. Key resistance lies at $106,000, aligned with diagonal trend lines, and a daily close above this zone is needed to restore a bullish outlook.
On the downside, immediate supports are at $91,700 and $85,600, with a break below $88,700 potentially opening the path to $85,800 and $83,200. Technical indicators, including the RSI in oversold territory and a bearish MACD, reinforce the negative momentum. Despite a minor recovery above $90,000 in the last 24 hours, analysts warn that bearish pressure will prevail as long as Bitcoin remains below critical trend lines.
