Bitcoin retreated below $90,000 in a tight Liquidation session as investors reduced their risk appetite ahead of a week full of economic data releases and central bank events.
Overall, price movements have been subdued, while technical milestones and monetary policy expectations in the US and Japan are becoming the focal point shaping short-term crypto trading sentiment.
- Bitcoin is trading around $89,600, with the market lacking buying pressure as it awaits a major macroeconomic event.
- Major altcoins continue to weaken, while Bitcoin dominance nears 57%, indicating selective money flow.
- The $86,000 mark is being watched as a key support level; the BOJ is expected to raise interest rates to 0.75%.
Bitcoin fell below $90,000 in Sunday's thin liquidation session.
Bitcoin and Ethereum prices both adjusted downwards during the day.
Bitcoin slipped below $90,000, trading around $89,600 early evening (GMT+7), down about 0.9% in 24 hours; Ethereum was around $3,104, down for the day but up more than 2% in 7 days.
Bitcoin edged up slightly this week but is still down about 7.6% over the past month. This reflects a market pause as short-term capital temporarily stays on the sidelines, especially on Sundays when liquidation is typically low.
Ethereum's weekly performance outperforming Bitcoin suggests that risk appetite hasn't completely disappeared, but the overall momentum remains unconvincing as most major assets haven't yet made a clear breakout.
When monitoring price fluctuations and sentiment ahead of macroeconomic events, traders can refer to BingX insights into trading tools and conditions, which is especially useful if you are evaluating the market based on Derivative signals such as funding, open interest (OI), and liquidation levels at different stages.
Altcoin weakness reinforces defensive money flow trend.
Solana, XRP, Dogecoin , and ADA declined for the day and remain in double-digit monthly losses, while the CoinDesk 20 Index (CD20) dropped nearly 1%.
The widespread decline across major altcoins suggests that investors remain cautious about risk, prioritizing holding positions in leading assets.
In a context of relatively low volatility but weak market breadth, short-term rallies may lack sustainability unless accompanied by improved liquidation .
Capital and volume indicate that the market is "waiting for a signal".
The total crypto market Capital is nearly $3.15 trillion, down about 0.8% in 24 hours; volume is around $89 billion, reflecting the thin liquidation characteristic of Sundays.
Bitcoin's dominance around 57% indicates that concentration remains high in the largest asset. In a "range-bound" environment, high dominance often implies that money flows remain selective and prioritize relative safety, making altcoin rallies more limited without a major macroeconomic catalyst or new capital inflows.
The $86,000 mark has become a technical focal point for Bitcoin.
The risk of a sharp decline increases if the key support zone is lost.
Some analyses warn that Bitcoin could weaken if technical levels are broken, with $86,000 being XEM a key level to hold.
Chia to analyst Ali Martinez on X, $86,000 is a significant support level; if this area is breached, a deeper correction scenario could be triggered.
In a context of low liquidation and a market sensitive to macroeconomic news, support/resistance levels are often tested more quickly, increasing the risk of liquidation wipeout in both directions.
For investors, the key thing to watch is not just the price level, but also the reaction after reaching a threshold: a rebound with volume or a breakout with acceleration. This is often the difference between "noise" and a short-term trend reversal.
A busy macroeconomic calendar can shape interest rate expectations and risk sentiment.
US data and Fed speeches are the key variables of the week.
The market is currently pausing ahead of a series of US data releases, including employment figures, November inflation, preliminary December PMI, and statements from Federal Reserve Governors Stephen Miran and Christopher J. Waller.
Key indicators include the unemployment rate, ADP employment data, weekly jobless claims, and signals from inflation and the PMI.
In the case of crypto, this data can indirectly impact investor expectations regarding interest rates, yields, and risk tolerance, thereby influencing the flow of funds into highly volatile assets like Bitcoin.
- Employment data: unemployment rate, ADP, jobless claims.
- Growth & Price Group: November inflation, December preliminary PMI.
- Policy expectations group: statements from Fed officials.
The BOJ is expected to raise interest rates to 0.75%, impacting carry trade.
Markets are watching the BOJ's policy meeting on Thursday, expecting a rate hike to 0.75% after Governor Kazuo Ueda indicated inflation is above the 2% target for more than three years.
Although borrowing costs in Japan remain low compared to the global average, expectations of tightening could impact carry trades that use the yen as a source of Capital, which are XEM as a liquidation support channel for risky assets, including crypto.
Reuters reported that the market has somewhat “priceed down” the possibility of an interest rate hike, and the BOJ may emphasize that monetary conditions remain supportive and further steps depend on the economy’s response.
In reality, even small changes in interest rate and exchange rate expectations can shift short-term Capital flows.
Therefore, crypto volatility this week could stem not only from US data but also from how the market interprets the BOJ's message.
Frequently Asked Questions
Why did Bitcoin fall below $90,000 despite relatively small fluctuations?
Sunday sessions are typically liquidation , as investors reduce their risk appetite ahead of a packed schedule of economic data and central bank events, resulting in indecisive buying.
What does the $86,000 mark mean for Bitcoin?
$86,000 is being watched as a key support zone. If Bitcoin loses this level, the risk of triggering a deeper correction could increase due to deteriorating sentiment and technical analysis.
How might a Bank of Japan (BOJ) interest rate hike affect the crypto market?
Expectations that the Bank of Japan (BOJ) will raise interest rates to 0.75% could impact carry trades that use the yen as a source of Capital. If liquidation from carry trade weakens, risky assets like cryptocurrencies could come under pressure.
