The market begins December under tension while the Bitcoin price prediction suggests volatility ahead of imminent Federal Reserve decisions. According to analyst Arslan Butt, the asset trades near $86,056 dollars after reversing its October peak, facing a massive liquidity rotation that could redefine global risk appetite in the coming weeks.
Technical data shows that Bitcoin has fallen almost 6% in the last 24 hours, losing strength after previously reaching $126,000 dollars. Analysts warn that a rotation of $6.6 trillion dollars in global liquidity could shake bond and equity markets, directly impacting the digital sector. On the other hand, price action remains trapped in a descending channel, with clear resistance at the 20-day moving average near $92,000 dollars, which reinforces the dominance of sellers in the short term against buyers.
Will the change in Fed leadership be able to drive a bullish recovery?
Speculation about the financial future intensifies amid reports that Kevin Hassett, former economic advisor, could chair the Fed. His appointment would mark a dramatic shift towards more friendly policies with digital assets, encouraging capital movement into the sector. Likewise, traders observe subtle signals from China, where improvements in credit conditions and liquidity adjustments are interpreted as a green light for high-risk assets, including cryptocurrencies, in a changing macroeconomic environment.
If the current trend persists, the Bitcoin price prediction places the next critical support at $81,028 dollars. A break below this level, driven by accelerated volume, could extend losses towards $75,391 dollars or even lower zones. However, indicators like the RSI at 32 suggest that momentum is weak but not oversold, so a daily close above $103,574 dollars is required to confirm a significant bullish reversal and attract institutional buyers again.
The scenario for the year-end depends on the interaction between monetary policy and sovereign capital flows. Bulls maintain hope in rate easing and tight supply, although immediate volatility seems inevitable as the market digests these structural changes. Investors must watch the mentioned technical support levels, as a rebound from that zone could reopen targets towards $98,000 dollars and reactivate the positive cycle for the rest of the main digital assets.
