Upcoming US and Japan economic announcements add to cryptocurrency market pressures.
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ContentsImpending Market DownturnShort Liquidity and Market Reactions
Bitcoin is in a precarious position as it struggles to reclaim the $88,000 mark, with significant developments on the horizon including an impending address by Trump to the nation. Trump is set to discuss with Waller about the Fed Chair position and is anticipated to announce his decision in the coming weeks. Despite this, the prominent cryptocurrency oracle maintains a bearish outlook, with predictions suggesting massive downturns for altcoins if proven correct.
Impending Market Downturn
The upcoming Supreme Court decision, MSCI’s classification of cryptocurrency reserve companies as funds, and a possible interest rate hike in Japan are significant negative developments expected within the month. Japan is due to announce its decision on Friday, following the release of the US inflation report this week. All these factors contribute to a dampened risk appetite among cryptocurrency investors.
As expected, Bitcoin lost its crucial $88,000 support level. Roman Trading foresaw a minor bounce from the recent low, which came to pass. The crypto oracle has reiterated a target of $76,000, maintaining confidence in its prediction.
“Bull waves emerged, and the declining volume was low. I predicted the bounce perfectly. However, I don’t think this bounce will lead to anything significant. In the near future, Bitcoin (BTC) will reach $76,000.”
Short Liquidity and Market Reactions
Mark Cullen anticipates that short liquidity concentrated above $95,000 will soon be cleared. This would mean a potential $8,000 increase from the current levels. However, a minor clearance might occur around $83,000 beforehand. If his scenario unfolds, the more substantial short liquidation could push the spot price above $98,000.
On the technical front, Mark’s predictions were consistent. “With yesterday’s sell-off, BTC reached the Fib gold level of the upward movement. I’d like to see a bounce and a higher low from here, but with the ongoing downtrend, it is likely that the lows seen at the end of November will be revisited.”
US inflation figures are set to be released on Thursday, with Japan’s interest rate decision following on Friday. Thus, strong pressure points for cryptocurrencies remain imminent. This aligns with Mark’s short-term dip expectations.
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