Bitcoin (BTC) might face a continued correction towards the $70,000 degree if the Financial institution of Japan (BoJ) proceeds with an anticipated interest-rate hike on Dec. 19, in line with a number of macro-focused analysts.
Key takeaways:
BoJ tightening might strain Bitcoin by draining world liquidity.
Macro and technical indicators align round a $70,000 draw back goal.
BOJ hikes preceded 20-30% BTC value corrections
Each BOJ price hike since 2024 coincided with Bitcoin value drawdowns exceeding 20%, in line with knowledge highlighted by AndrewBTC.
In an X put up on Saturday, the analyst highlighted BTC declines of roughly 23% in March 2024, 26% in July 2024, and 31% in January 2025.
AndrewBTC warned that comparable draw back dangers might emerge once more if the BOJ raises charges on Friday. A current Reuters ballot confirmed a majority of economists forecasting one other price improve on the December coverage assembly.
The thesis centered on Japan’s function in world liquidity.
Previously, BOJ price hikes strengthened the Japanese yen, making it dearer to borrow and put money into riskier belongings. This typically compelled merchants to unwind so-called “yen carry trades,” decreasing liquidity throughout world markets.
As liquidity tightened, Bitcoin got here below strain, as buyers reduce leverage and lowered publicity throughout risk-off durations.
Analyst EX mentioned BTC will “dump beneath $70,000” below these macroeconomic circumstances.
Bitcoin bear flag targets similar $70,000 space
Bitcoin’s each day chart additionally flashed technical warning indicators, with value motion consolidating inside a basic bear flag formation.
The sample fashioned after BTC’s sharp breakdown from the $105,000–$110,000 area in November, adopted by a slender upward-sloping consolidation channel. Such buildings usually sign non permanent pauses earlier than pattern continuation.
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A confirmed breakdown beneath the flag’s decrease trendline might set off one other leg decrease, with the measured transfer pointing towards the $70,000–$72,500 zone. A number of analysts, together with James Verify and Sellén, shared comparable draw back targets previously month.
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This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer includes threat, and readers ought to conduct their very own analysis when making a choice. Whereas we try to offer correct and well timed info, Cointelegraph doesn’t assure the accuracy, completeness, or reliability of any info on this article. This text might include forward-looking statements which are topic to dangers and uncertainties. Cointelegraph won’t be chargeable for any loss or injury arising out of your reliance on this info.
