Analysts are sounding the alarm this week regarding the future of Bitcoin as critical economic data looms on the horizon. Predictions from Russian financial experts indicate that the cryptocurrency”s price recovery hinges on the upcoming US retail sales figures, set to be released on November 25, followed closely by personal consumption expenditures on November 26.
Oleg Kalmanovich, an analyst at the financial brokerage firm Neomarkets KZ, emphasized that if these economic indicators fall short of expectations, there could be a potential interest rate cut by the Federal Reserve on December 10. Such a move could provide a much-needed lifeline for Bitcoin and the broader crypto market. Conversely, if the data meets or exceeds expectations, the cryptocurrency space may continue to face downward pressure.
Market sentiment reflects a resurgence in Bitcoin demand, particularly around the $80,600 mark, according to Vasiliy Girya, CEO of GIS Mining. While this uptick suggests a slight recovery, Girya cautioned against interpreting it as a definitive trend reversal, stating, “It”s too early to see this move as the start of a sustainable trend reversal.”
For the short-term outlook, Girya identified $87,000 as a critical resistance level. He stated, “If the price stays below this level before US stock markets open on Monday, we can say that a prolonged period of stagnation has begun. This would be the beginning of crypto winter.”
Moreover, Girya believes that for Bitcoin to avoid a lackluster end to the year, it must recover to the $93,000 level by Monday. He noted that such a rebound would help restore trader confidence, which is essential for a positive market outlook.
In contrast, Kalmanovich pointed out a trend of institutional and wealthy investors reallocating their assets toward the dollar, reflecting in an outflow from riskier investments, including cryptocurrency funds.
The current market environment is undoubtedly tense, with all eyes on the impending data releases that will determine the direction of Bitcoin and the broader cryptocurrency landscape.
