Bitcoin’s fall below $90,000 is a negative sign, but the bulls are expected to vigorously defend the $85,000 level.
Bitcoin (BTC) fell below the solid support of $90,000, indicating that the bears are trying to take control. However, historical data suggests that Bitcoin tends to fall in January after the halving year. Bitcoin fell 30% in January 2017 and 25% in January 2021 but then recovered and went on to make a new all-time high later in the respective year.
It is not only Bitcoin that is taking a beating. The S&P 500 (SPX) has also corrected in the past few days. The strength of the US Dollar Index (DXY) is putting pressure on risk assets. Additionally, markets are adjusting to the possibility of lower rate cuts in the future than previously anticipated. The CME Group’s FedWatch Tool shows a 2.7% probability of a 0.25% rate cut in the January meeting.
Daily cryptocurrency market performance. Source: Coin360
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