Bitcoin (BTC) may face a continued correction towards the $70,000 stage if the Financial institution of Japan (BoJ) proceeds with an anticipated interest-rate hike on Dec. 19, in accordance to 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 accordance to information 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 related 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 enhance on the December coverage assembly.
The thesis centered on Japan’s function in international liquidity.
Prior to now, 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 international markets.
As liquidity tightened, Bitcoin got here underneath stress, as buyers reduce leverage and lowered publicity throughout risk-off intervals.
Analyst EX said BTC will “dump beneath $70,000” underneath these macroeconomic situations.
Bitcoin bear flag targets identical $70,000 space
Bitcoin’s every 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 slender upward-sloping consolidation channel. Such constructions usually sign non permanent pauses earlier than development 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 Check and Sellén, shared related draw back targets up to now 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 resolution. Whereas we attempt to present 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 can be topic to dangers and uncertainties. Cointelegraph won’t be answerable for any loss or injury arising out of your reliance on this info.
