Investor sentiment continues to weigh heavily on the cryptocurrency market, capping recent rallies for both Bitcoin and major altcoins. Following a brief surge above $89,000, Bitcoin is battling to maintain its position as selling pressure from bears persists.
This development comes on the heels of a rate hike by the Bank of Japan (BoJ), which lifted rates to approximately 0.75%. Typically, such moves are seen as unfavorable for risk assets. However, Arthur Hayes, co-founder of BitMEX, advised his followers on X to not go against the BoJ, emphasizing that negative real rates are part of the policy landscape. Hayes anticipates the dollar/yen rate could reach the 200 level, with Bitcoin potentially hitting a million.
Despite this optimistic long-term outlook, the near-term scenario remains uncertain. Investors are grappling with the question of whether to seize the opportunity to buy or to sell during the rallies. Jurrien Timmer, Fidelity”s director of global macroeconomic research, suggested that Bitcoin may have peaked at $125,000, indicating the conclusion of its four-year halving cycle. He forecasts a challenging year for Bitcoin in 2026, with critical support expected in the $65,000 to $75,000 range.
In a contrasting prediction, Paolo Ardoino, CEO of Tether, noted that Bitcoin might avoid the sharp corrections of 80% seen in previous market cycles. However, he cautioned that Bitcoin”s performance could be influenced by the AI bubble and its correlation with broader capital markets.
As Bitcoin attempts to defend its $84,000 support level, traders should be aware of critical resistance at the moving averages. The 20-day exponential moving average (EMA) currently sits at $89,369. If Bitcoin fails to break through this resistance, a sharp decline could lead to levels around $80,600.
Turning to other cryptocurrencies, Ether is showing signs of a relief rally around the $2,700 support level, but faces significant obstacles at $3,161 and $3,450. A decline below $2,623 could trigger a drop to $2,250.
BNB is also attempting to recover from an uptrend line but must overcome resistance at the moving averages to avoid a potential drop to $790. Meanwhile, XRP is trying to break free from a descending channel, but a failure to maintain upwards momentum could lead to a test of the $1.61 support level.
Solana has recently dropped below $121, facing significant selling pressure at the moving averages. If the price fails to hold, it could slide down to $110 or even $95. On the other hand, a breakout above $147 could signal a shift in trend.
Dogecoin remains below $0.14, with bulls trying to initiate a recovery. However, sellers are likely to defend this level, increasing the risk of a decline to $0.10 if the price falters.
Cardano is attempting to reclaim support at $0.37, while Bitcoin Cash is showing resilience above the 50-day SMA, with potential upward movement if it can surpass $615. Finally, Chainlink is facing resistance at $13.99, with critical support at $10.94, which could be pivotal for its future trajectory.
This article does not constitute investment advice. All trading and investment activities involve risk, and readers should conduct thorough research before making decisions.
