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Bitcoin could fall to $70,000 if the leading cryptocurrency fails to hold the $76,000 support level, according to analysts from market maker Wintermute.
Bitcoin has declined for three consecutive weeks, approaching the $80,000 mark three times during this period, experts noted. The $82,500 level previously acted as a resistance to growth before becoming support. After the latest price drop, this level has once again become a resistance level, the market maker’s analysts believe.
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Wintermute links the weakening of Bitcoin to the performance of U.S. technology stocks. The cryptocurrency is increasingly mirroring the movements of the Nasdaq index, and inflows into spot Bitcoin ETFs are being replaced by capital outflows. According to experts, a sell-off in tech giant stocks could intensify pressure on the crypto market.
The defining event for the market maker’s analysts is the upcoming meeting of the U.S. Federal Reserve (Fed). Investors expect the interest rate to remain unchanged, but comments from Fed Governor Kevin Warsh will be of particular importance. If the Fed signals a potential rate hike in December, yields on U.S. Treasury bonds could rise, creating additional risk for Bitcoin’s price. Conversely, the absence of such a signal could help the price return to $82,000, Wintermute experts believe.
Previously, Wintermute suggested that Bitcoin could continue its rise after surpassing the $87,000 threshold. Otherwise, experts allowed for a decline in the price to levels slightly above $70,000.
