The declining price of Bitcoin 
$91,081, now down to $85,314, reflects the growing concerns of risk-averse investors. Losses in altcoins are much more significant, with many dropping to critical support levels. Amid these downturns, there are glimmers of optimism, such as Coinbase‘s announcement of introducing stock trading features. However, the general sentiment for cryptocurrencies remains negative for the remainder of December and into January. So, what insights does the crypto oracle offer?
Crypto Oracle’s Predictions
For weeks, warnings have been issued about prevailing negative trends. With this week’s important developments, investors were cautioned about potential difficulties. As predicted, Bitcoin fell from $90,000 to $85,000, with a brief peak back at $90,000 in the last 24 hours.
Roman Trading, nicknamed the crypto oracle, who has accurately predicted recent declines, shared updated charts a few hours ago. Regarding the $90,000 trap, he remarked:
“Remember, every bounce in BTC turns into a sell-off. Avoid the trap set by these uninformed individuals.”
The analyst, sharing the above daily chart, recently emphasized a target below $76,000 in his detailed evaluation.
“We reached our expected bounce at the 84,000 level, completing our bear flag + 20MA test perfectly.
They’ll keep telling you each bounce marks the bottom and a bull market return. it’s not. Next target: 76,000 and below.”
Impact of Japan’s Interest Rate Decision and Inflation
On Friday, at 07:30 AM Turkish time, the Bank of Japan is likely to announce a 25 basis points rate increase. With current rates at 0.5%, a 25bps increase is substantial. Investors leverage Japan’s near-zero borrowing rates to finance investments in bonds, stocks, and cryptocurrencies. Hundreds of billions circle global markets for carry trades. However, with the US reducing rates and Japan increasing them, carry trade disruptions result in declining risk market investments due to reduced cheap capital.
Previous rate decisions affected cryptos negatively. Even this historical precedent stirs fear-driven drops as Friday’s decision looms. January also brings looming negative events—such as the potential repeal of High Court Tariffs and the reclassification of crypto reserve companies by MSCI. Therefore, the upcoming days are ideal for Bitcoin’s potential fall below $80,000. Analysts awaiting declines, like Roman Trading, are hopeful for this reason.
Today, one hour before the US market opens, US inflation data will be released, with consensus prediction at 3.1%. The core CPI is expected to remain unchanged. Concurrently, the European Central Bank will announce its decision, expected to remain steady. Having concluded their cuts, they now discuss tightening, with the Fed lagging. The table above illustrates different financial institutions’ US CPI forecasts.
Staying updated with news is crucial these days as significant events can have widespread consequences. The CryptoAppsy news section might assist you.
