Japanese regulator may cause bitcoin to fall to $ 69,000

Bitcoin BTC $88,047.23 Mezo Wrapped BTC -1.06% Market capitalization $51.53 million VOL. 24 hours $1.05 billion is entering a critical macro week amid the Bank of Japan’s expected interest rate decision on January 23. This event could be a trigger that either confirms the start of a deeper market correction or allows BTC to make a final upward push.

The level of $ 98,000 has been a key resistance several times, with the last attempt at growth stopping at $ 97,950. This indicates the exhaustion of buyers and increases the likelihood of further decline. At the moment, Bitcoin is still holding above the long-term uptrend line, but the gradual decline is bringing the market closer to a critical point.

The level of $ 88,450, which runs along this trend line, is crucial: its breakthrough will be a technical confirmation of the transition to a downward phase. In this case, BTC could move into a horizontal-downward structure with a potential move to the $ 69,000 support zone.

Japan’s monetary policy can only increase the pressure. If the Bank of Japan goes ahead with the expected rate hike, it could strengthen the yen and at the same time reduce global liquidity, which will put additional pressure on risky assets, including Bitcoin.

However, if buyers are able to defend the $ 88,450 level, another rise to the $ 102,000-$ 110,000 area is possible. However, even in this scenario, the movement looks like the final phase of a distribution, not the beginning of a new bullish trend. If macroeconomic conditions deteriorate further, support may be found in the $ 49,000-$ 52,000 zone, where the long-term trend has been going since 2018.