Bitcoin is once again facing selling pressure after breaking through a key support trendline – known as a bearish flag pattern, often associated with ongoing downward trends.
BTC price dropped 1.75% on Wednesday to $85,900, as the market reacted to growing uncertainty around the upcoming interest rate decision by the Bank of Japan. At the same time, investors are bracing for fresh U.S. inflation data.
Inflation and Unemployment Fuel Market Anxiety
Recent U.S. labor market data added to investor concerns. The unemployment rate rose to 4.6% in November, the highest in over four years. Although the non-farm sector added 64,000 new jobs, it followed a sharp drop of 105,000 in the previous month.
Job gains were concentrated in healthcare and construction, while losses were seen in transportation, warehousing, and government sectors.
According to CME FedWatch data, the probability of a 25 basis point rate cut at the January Fed meeting stands at just 24.4%, reflecting caution and uncertainty around future monetary policy moves.
Key CPI Data Due December 18
Markets now turn their attention to the November Consumer Price Index (CPI) report, expected on December 18. Forecasts suggest core inflation (excluding food and energy) will remain at 3% year-over-year, matching September’s reading.
Analyst Darkfost noted that despite inflationary concerns, Bitcoin’s annual supply growth remains below 1%, supporting its long-term scarcity, especially ahead of the upcoming halving event.
Technical Outlook: Bitcoin Breaks Bear Flag, Eyes $80,000
Technical charts show that BTC experienced a short 7.5% rally in recent weeks – from $80,537 to $86,605. However, price action remained tightly squeezed between two converging trendlines, forming a classic bearish continuation pattern known as an inverted flag.
On Monday, Bitcoin broke below the lower trendline, confirming the bearish setup. The daily RSI dropped to 37%, signaling prevailing negative sentiment.
If the bearish scenario plays out, BTC could fall another 7%, potentially testing the lower support zone near $80,000.
Conversely, a bounce back toward $90,000 would invalidate this bearish outlook and could revive bullish momentum.
#BTC , #bitcoin , #CryptoInvesting , #CryptoAnalysis , #CryptoNews
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
