Key Takeaways
Bitcoin is currently trading at around $86,386.17 at press time. The price has edged lower by 4.11% in the past 24 hours. Bitcoin is trading below the 200-day Simple Moving Average (SMA). The market cap decreased by over 3% to touch $1.71 trillion. Over the past 24 hours, the trading volume has gone down by 5.16% to reach $44.22 billion. The Fear & Greed Index reading of 16 suggests extreme fear gripping the crypto market.
The overall market sentiment remains bearish with persisting selling pressure. The following are the key market indicators and their value.
The price of Bitcoin is predicted to remain range-bound around $85K to $89K for today, with bearish sentiments dominating. The $84k support level remains crucial if the price dips further. The U.S employment data release is likely to have an impact on the price, especially amid a low volatility environment without any definitive trend to either side. Weaker job data may result in a relief bounce, but stronger data will add pressure on Bitcoin.
As for the upcoming week, the price of Bitcoin is forecasted to remain within a range of $79k to $87k if the market remains devoid of any strong catalysts.
| Date | Day of week | Daily Low | Daily High | Average |
|---|---|---|---|---|
| 17/12 | Wednesday | $85,721.21 | $87,877.05 | $86,799.13 |
| 18/12 | Thursday | $83,418.69 | $86,956.05 | $85,187.37 |
| 19/12 | Friday | $83,638.06 | $86,155.05 | $84,896.56 |
| 20/12 | Saturday | $83,924.45 | $84,035.6 | $83,980.03 |
| 21/12 | Sunday | $81,735.42 | $83,873.45 | $82,804.44 |
| 22/12 | Monday | $79,304.7 | $83,453.69 | $81,379.2 |
| 23/12 | Tuesday | $79,544.06 | $79,923.35 | $79,733.71 |
The price movements of Bitcoin are largely shaped by the prevailing macroeconomic conditions, institutional adoption, and technical indicators. Here is a detailed look at each of these factors.
Bitcoin is trading below the 10-day EMA of 89,013 and the SMA of 89,927. A Technical breakdown from $90k had resulted in cascading liquidations, with highly leveraged positions exacerbating the losses. The MACD histogram is showing a bearish crossover. Although the 14-day Relative Strength Index (RSI) reading of 36 indicates that sellers are still in control, the value is nearing oversold territory. An oversold RSI and a pullback to $84k may attract dip buyers. The traders are now closely watching whether Bitcoin can hold 84k. The next support level available for Bitcoin is at the 82k zone.
Despite the prevailing macro caution, Michael Saylor’s Strategy (MSTR) has purchased 10,645 BTC valued at around $980.3 million in the past week. Nevertheless, the firm’s stock plummeted. Moreover, the U.S BTC spot Exchange Traded Funds (ETFs) have recorded a net outflow of $357.69 million. The volatile ETF flows indicate a wavering institutional confidence.
The macro environment remains choppy, especially for risk assets, with fears about rising inflation and a weakening labour market. Investors are reducing risk exposure as the release of the Consumer Price Index (CPI) is nearing, while employment data will be released later today. The November CPI data is scheduled to be released on December 18.
One of the key reasons for the broader crypto market slowdown is the Fed’s signalling of less than expected cuts in the upcoming year. Despite the 25-basis-point rate cut on December 10, risk-off sentiment prevailed around bitcoin. The statements released by Fed members after the rate cut decision further indicated a growing divergence and a complex macro landscape. To accentuate the fears, the Bank of Japan is likely to announce a rate hike this month, further dampening the hopes for a December rally. Investors are worried about draining global liquidity with financial tightening in Japan.
The price movements of Bitcoin have remained largely flat in the past weeks. The price movements are likely to continue in the same manner without a strong market catalyst. Yet, the current orderly movements without elevated volatility are seen as a sign of maturity by many investors. The erratic price movements may not be on the horizon, but the market is heavily weighed down by macroeconomic conditions and concerns about draining global liquidity.
Disclaimer: These crypto price forecasts are based on predictive modeling and should not be considered financial advice.
The post Bitcoin Price Prediction Today: Will the BTC Hold $84k Support Level Amid the U.S Job Data Release? appeared first on BiteMyCoin.
Also read: US Crypto Market Structure Bill Delayed Until 2026
