Bitcoin will ‘dump below $70K’ thanks to hawkish Japan: Macro analysts

Bitcoin (BTC) could look a continued correction toward the $70,000 level if the Bank of Japan (BoJ) proceeds with an expected interest-rate hike connected Dec. 19, according to aggregate macro-focused analysts.

Key takeaways:

• BoJ tightening could unit Bitcoin by draining planetary liquidity.

• Macro and method signals align astir a $70,000 downside target.

BOJ hikes preceded 20-30% BTC terms corrections

Every BOJ complaint hike since 2024 coincided with Bitcoin terms drawdowns exceeding 20%, according to information highlighted by AndrewBTC.

In an X station connected Saturday, the expert highlighted BTC declines of astir 23% successful March 2024, 26% successful July 2024, and 31% successful January 2025.

BTC/USD play chart. Source: TradingView/AndrewBTC

AndrewBTC warned that akin downside risks could look again if the BOJ raises rates connected Friday. A caller Reuters canvass showed a bulk of economists forecasting different complaint summation astatine the December argumentation meeting.

The thesis centered connected Japan’s relation successful planetary liquidity.

In the past, BOJ complaint hikes strengthened the Japanese yen, making it much costly to get and put successful riskier assets. This often forced traders to unwind alleged “yen transportation trades,” reducing liquidity crossed planetary markets.

As liquidity tightened, Bitcoin came nether pressure, arsenic investors chopped leverage and reduced vulnerability during risk-off periods.

Analyst EX said BTC volition “dump beneath $70,000” nether these macroeconomic conditions.

Source: X

Bitcoin carnivore emblem targets aforesaid $70,000 area

Bitcoin’s regular illustration besides flashed method informing signs, with terms enactment consolidating wrong a classical carnivore emblem formation.

BTC/USD regular chart. Source: TradingView

The signifier formed aft BTC’s crisp breakdown from the $105,000–$110,000 portion successful November, followed by a constrictive upward-sloping consolidation channel. Such structures typically awesome impermanent pauses earlier inclination continuation.

Related: BTC OGs selling covered calls is the main culprit suppressing price: Analyst

A confirmed breakdown beneath the flag’s little trendline could trigger different limb lower, with the measured determination pointing toward the $70,000–$72,500 zone. Multiple analysts, including James Check and Sellén, shared akin downside targets successful the past month.

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This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision. While we strive to supply close and timely information, Cointelegraph does not warrant the accuracy, completeness, oregon reliability of immoderate accusation successful this article. This nonfiction whitethorn incorporate forward-looking statements that are taxable to risks and uncertainties. Cointelegraph volition not beryllium liable for immoderate nonaccomplishment oregon harm arising from your reliance connected this information.