Bitcoin (BTC) may 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:
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BoJ tightening may stress Bitcoin by draining international liquidity.
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Macro and technical indicators align round a $70,000 draw back goal.
BOJ hikes preceded 20-30% BTC worth corrections
Each BOJ price hike since 2024 coincided with Bitcoin worth drawdowns exceeding 20%, in line with information highlighted by AndrewBTC.
In an X submit 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 may emerge once more if the BOJ raises charges on Friday. A latest Reuters ballot confirmed a majority of economists forecasting one other price improve on the December coverage assembly.
The thesis centered on Japan’s position in international liquidity.
Prior to now, BOJ price hikes strengthened the Japanese yen, making it costlier to borrow and spend money on riskier belongings. This usually pressured merchants to unwind so-called “yen carry trades,” decreasing liquidity throughout international markets.
As liquidity tightened, Bitcoin got here beneath stress, as traders minimize leverage and diminished publicity throughout risk-off intervals.
Analyst EX mentioned BTC will “dump beneath $70,000” beneath these macroeconomic situations.
Bitcoin bear flag targets identical $70,000 space
Bitcoin’s day by day chart additionally flashed technical warning indicators, with worth 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 slim upward-sloping consolidation channel. Such buildings usually sign momentary pauses earlier than pattern continuation.
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A confirmed breakdown beneath the flag’s decrease trendline may 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 prior to now month.
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This text doesn’t comprise 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 call. Whereas we attempt 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 comprise forward-looking statements which can be topic to dangers and uncertainties. Cointelegraph won’t be chargeable for any loss or injury arising out of your reliance on this info.