Key highlights:
- Bitcoin loses 17% as analysts warn the correction may only be starting.
- Japan’s rising bond yields pressure global liquidity and risk assets.
- On-chain data shows record stablecoin “dry powder” waiting to deploy.
Disclaimer: Always seek independent professional advice before making investment decisions. Some links may earn us a commission at no extra cost to you.
Bitcoin sank to $85,000 in early December, extending total November losses to 17.7%.
Analysts Warn Bitcoin Must Reclaim $88,000–$89,000 to Avoid a Larger Sell-Off
A sudden wave of liquidations (over $600 million in one day) pushed Bitcoin down to $85,616 on Bitstamp. Trader Roman argued that a return to $50,000 is “inevitable,” pointing to weakening momentum across weekly timeframes.
BTC/USD 1-Week Chart. Source: Roman via X
Veteran trader Peter Brandt echoed the bearish tone, suggesting Bitcoin’s brief push above $90,000 was merely a “dead cat bounce.” He warned the price could fall below $40,000 if current patterns follow historic precedents.
BTC/USD 1-Week Chart. Source: Peter Brandt via X
Investor Ted Pillows added that Bitcoin must recover the $88,000–$89,000 zone or risk revisiting November’s lows.
BTC/USD 1-Day Chart. Source: Ted Pillows via X
Some analysts see a consolidation range forming between $80,000 and $99,000. Trader CrypNuevo emphasized the importance of the 50-week EMA and the early-2025 trend level as the next major decision points.
BTC/USD 1-Week Chart. Source: CrypNuevo via X
He warned: “Drop with a liquidation cascade > quick recovery > 1D50EMA rejection > back to lows > bounce above the 1D50EMA > end of correction and new highs.”
Macro pressures add fuel to the downtrend
Japan is again influencing global markets. The yield on Japan’s 10-year government bond jumped to 1.84%, its highest since April 2008. BitMEX founder Arthur Hayes linked Bitcoin’s decline to expectations of a Bank of Japan rate hike in December.
He explained that the USD/JPY exchange rate at 155–160 is forcing the Japanese central bank toward a more aggressive stance, even as other major economies move toward easing.
On-chain data paints a mixed picture
The Coinbase Premium, a key measure of U.S. spot-market demand, turned positive again after a negative November. CryptoQuant analyst Cas Abbé sees this as a constructive sign:
“The Coinbase Premium stays positive despite the decline. This was one of the signals that triggered the April 2025 reversal.”
Meanwhile, Binance shows a striking imbalance: the stablecoin-to-BTC reserve ratio is at a six-year high. CryptoQuant analyst CryptoOnChain called this an “unprecedented accumulation of buying power.”
Key Catalysts Ahead
Two upcoming macro releases could shape Bitcoin’s next move:
- U.S. PCE inflation: December 5 at 4:00 PM CET
- Federal Reserve rate decision: December 10, with an 87% chance of a 0.25% cut
Until then, Bitcoin hovers between critical technical levels, gathering energy for what may become its next decisive breakout, whether it will be up or down.
Kraken: Best crypto exchange for security & reliability
- Buy, sell, and trade 400+ cryptocurrencies with industry-leading security
- Spot, Futures & Margin trading – leverage up to 5x for advanced traders
- Earn rewards with staking on top cryptocurrencies
- 24/7 customer support and high liquidity for fast trades
- Regulated in the US with strong compliance and security measures
- 13+ million users worldwide
Disclaimer: This content is for informational purposes only and does not constitute financial, investment, or other advice. Nothing on this page is a recommendation or solicitation. Always seek independent professional advice before making investment decisions. Some links may earn us a commission at no extra cost to you.
Source:: An 'Inevitable' Fall to $50,000? What's in Store for Bitcoin This Week