For weeks, the financial markets have been anticipating significant developments, with potential major impacts on cryptocurrencies. Concerns have escalated that Bitcoin 
$78,914‘s price might dip to $70,000, as the cryptocurrency hovers at $89,000 while preparing for an intense period.
Cryptocurrencies Face Year’s Dramatic Downturn
While October 10 may not mark the occasion, this week could witness Bitcoin reaching deeper lows due to developments in Japan. Recent discussions over carry trade pressures on cryptocurrencies are coming to fruition, with the Japanese Central Bank (BoJ) expected to hike interest rates this Friday.
The analyst known as AndrewBTC notes that since 2024, each BoJ interest rate increase has triggered Bitcoin price drops exceeding 20%. These substantial declines illustrate the intense effect of such policy shifts on cryptocurrencies.
- March 2024: 23% decline.
- July 2024: 26% decline.
- January 2025: 31% decline.
With these substantial plunges, it’s clear that the current climate will exert significant pressure on cryptocurrencies until Friday. The U.S. market will also disclose critical employment and inflation data, adding to the volatility. Consequently, conditions might push Bitcoin to break below $88,000, or even $81,000. Although some might see this as an excellent short sale opportunity, short-side liquidations are likely due to brief corrections.
According to the latest Reuters survey, Japan is expected to initiate a rate hike in December. Known for its low-interest approach, BoJ’s moves to increase costs can redirect massive investments away from stocks, bonds, and cryptocurrencies. With reduced global liquidity and cheaper money, this scenario might lead to a severe downturn, potentially dropping Bitcoin to $70,000.
Bitcoin Chart Signals Critical Support Levels
The trend in the accompanying chart showing a bear flag pattern supports the scenario of a dip near $70,000. Analysts like Roman Trading share this view, predicting widespread confirmations from others. However, when predictions fail, accountability becomes scarce, which is why personal research is crucial.
Key short-term zones for BTC are at $88,000 and $80,500. Closing below these levels intensifies the likelihood of a descent to $76,000. This could lead to Roman Trading’s historical dip scenario, possibly extending to $56,000.
