Bitcoin Price Prediction Today: Will the BTC Plunge Below 80k Amid the CPI Data Release?
Key Takeaways
- The price of Bitcoin is projected to remain within a price range of $82k to $90k for today.
- If the inflation data exceeds expectations, the price may plunge to $80k or below.
- The crypto market remains in a precarious position with an uncertain macro climate, whale offloading, and December tax-loss harvesting.
Bitcoin’s Current Market Scenario: How is Bitcoin Performing Now?
Bitcoin is currently trading at around $86,688.54. The price has decreased by 0.74% over the past 24 hours. The market cap touched 1.73 trillion, while the 24-hour trading volume jumped 10% to $43.81 billion. Bitcoin is trading below the 200-day Simple Moving Average (SMA), and overall market sentiment remains bearish. Moreover, the Fear & Greed Index continues in the ‘Extreme Fear’ territory. The following are the key market indicators and their value.
- Fear & Greed Index: 16 (Extreme Fear)
- Market Sentiment: Bearish
- Supply Inflation: 0.87% (Low)
- Dominance: 59.47%.
- Volatility: 2.59% (Medium)
Bitcoin Price Prediction Today
The price of bitcoin is projected to remain within a price range of $82k to $90k for today. Yet, if the inflation data exceeds expectations, the price may plunge to $80k or below.
Bitcoin Price Prediction: Tomorrow, & This Week
As for the upcoming week, the price of bitcoin is forecasted to remain within a range of $80k to $86k if the macro caution continues to grip the market.
| Date | Day of week | Daily Low | Daily High | Average |
|---|---|---|---|---|
| 19/12 | Friday | $85,821 | $86,813.27 | $86,317.14 |
| 20/12 | Saturday | $84,693.82 | $86,107.39 | $85,400.61 |
| 21/12 | Sunday | $82,504.79 | $85,945.24 | $84,225.02 |
| 22/12 | Monday | $80,074.07 | $85,525.48 | $82,799.78 |
| 23/12 | Tuesday | $80,193.43 | $83,648.82 | $81,921.13 |
| 24/12 | Wednesday | $80,241.43 | $85,838.69 | $83,040.06 |
| 25/12 | Thursday | $80,791.33 | $82,294.14 | $81,542.74 |
Market Outlook: Technicals, Institutional Activity & Macro Trends
The price movements of Bitcoin largely depend on the macro trends, institutional interest, and whale activities. Here is a detailed look at each of these factors.
Technical Indicators Suggest Bearish Dominance in the Market
Bitcoin is trading below the 10-day Exponential Moving Average (EMA) and Simple Moving Average (SMA). The 14-day Relative Strength Index (RSI) of 40 suggests a neutral position with bearish inclination. MACD is showing a bearish crossover, further indicating the dominance of sellers. The bitcoin price chart followed a ‘Bart Simpson pattern’ yesterday, where the price rose higher, then flattened and dipped to $85k. The next support level available for the coin is at $82k to $87k. If the bitcoin fails to hold the current level, a dip to $80k or below is likely.
The Whale Off-Loading & Forced Liquidations Continue While ETFs Record Inflows
The whales or long-term holders continue to sell bitcoin. Since the fall from the all-time high of 126k, the selling pressure was exacerbated by the forced liquidations of leveraged positions. Over the past 24 hours, Bitcoin long positions worth $160 million were liquidated.
According to data from SoSoValue, the U.S BTC spot Exchange Traded Funds (ETFs) have recorded a net inflow of $457.29 million yesterday. Fidelity Wise Origin Bitcoin Fund (FBTC) alone recorded a net inflow of $391.49 million.
ETFs and the bitcoin treasury companies hold only 13% of the bitcoin. The lion’s share of the rest is concentrated in the hands of whales, making their activity most crucial in deciding the direction of price movements. Besides, December is the month when traders sell assets that are at a loss to save tax, popularly called ‘December tax-loss harvesting’. Ahead of the new year, selling is creating short-term downside pressure.
The Uncertainty Over Next Fed Chair & Upcoming CPI Data Accentuates the Investor Anxiety
The spill-over effects from the tech stock sell-off and uncertainty around Jerome Powell’s successor are hurting the crypto market. The crypto natives favour Kevin Hassett for the post. Former Fed Governor Kevin Warsh and current Fed Governor Chris Waller are other names at the top of the list. According to U.S. President Trump, the next Fed chair would be someone who believes in lower interest rates.
“I will soon announce our next chairman of the Federal Reserve, someone who believes in lower interest rates, by a lot, and mortgage payments will be coming down even further,” the President stated in his national address on Wednesday night.
Furthermore, the price decline of Bitcoin suggests its decoupling from the S&P 500. Meanwhile, the prices of gold and silver are soaring, reflecting investor interest in safe-haven assets amid the uncertainties. Upcoming Inflation data, scheduled to be released later today, is contributing to investor anxiety. If the inflation data turns out to be hotter than expected, a price plunge to $80k or below is likely.
The Bottom Line: What’s Ahead for BTC?
Bitcoin had a tumultuous year with a new all-time high and record liquidations. As the year is about to end, the crypto market remains in a precarious position with an uncertain macro climate. Even so, since BTC is a sentiment asset, a year-end rally can not be ruled out. Investors are advised to keep themselves updated and proceed with caution.
Disclaimer: These crypto price forecasts are based on predictive modeling and should not be considered financial advice.
