Essential Insights
The price of Bitcoin has increased by less than 1%, currently trading above $87,000.
The market is gearing up for the upcoming release of CPI data in just a few hours.
Bitcoin Surpasses $87,000
The cryptocurrency landscape has been volatile since the week began, with many digital assets currently showing losses. Bitcoin is now priced at $87,000 after dropping below the significant psychological threshold of $90,000 earlier this week.
This downward trend occurs just before the anticipated release of U.S. inflation data later today. The CPI figures for November are projected to reveal a 3.1% rise in inflation rates, which could have implications for future Federal Reserve interest rate policies.
Due to the absence of October’s CPI report caused by a government shutdown, investors will be looking closely at November’s data to gauge current price pressures.
Some experts express cautious optimism that Bitcoin may see temporary relief soon. Nick Forster, founder of onchain options platform Derive.xyz remarked that:
“The positioning around BTC remains firmly bearish. The volatility over 30 days has surged back towards 45%, while skew remains near -5%. Additionally, longer-term skew also hovers around -5%, indicating traders anticipate ongoing downside risks throughout Q1 and Q2 as persistent selling from previously dormant wallets impacts spot prices.”
Forster further noted that there’s about a 30% chance for BTC to hit $100K again while reclaiming its all-time high stands at roughly only 10% likelihood.
Potential Risks for BTC Correction
The four-hour chart for BTC/USD shows bearish trends as Bitcoin has struggled significantly over recent days. This decline follows a rejection from a descending trendline last Friday and represents a loss of approximately 7% since then.
This leading cryptocurrency tested support at $85k on Wednesday but managed to recover slightly and is now trading above $87k per coin.
If this correction persists and if Bitcoin closes below the daily candle mark at $85,569 support level, it may further decline toward the psychological barrier set at $80K.
The Relative Strength Index (RSI) indicates bearish momentum with its current reading at 41—below neutral territory marked by level 50—while MACD lines also remain within negative territory.
However,
should BTC manage to rebound and close above support levels set around$85,$569 it could potentially rally towards resistance located near$94,$253 .