Published: 16 December 2025,07:40
Daily Market Analysis New
*Bitcoin broke key support near $85,146 and Ethereum hit a one-week low as equity market weakness—especially in the AI sector—dragged on overall risk sentiment.
*Rising expectations of a Bank of Japan rate hike threaten a JPY carry trade unwind, potentially tightening global liquidity and weighing further on crypto assets.
*Today’s U.S. jobs data could offer short-term relief if it reinforces a dovish Fed outlook; otherwise, downside risks remain elevated.
Digital asset markets extended their decline, with Bitcoin breaching support to establish a new low near $85,146 and Ethereum falling to its weakest level in a week. The sell-off reflects a deterioration in broader risk appetite, fueled by mounting concerns over equity market valuations—particularly in the AI sector—which triggered a notable pullback across major U.S. indices.
Market participants are also positioning for potential volatility stemming from Friday’s Bank of Japan policy decision. Expectations for a rate hike have intensified, raising the prospect of a cascading liquidity impact should the BoJ proceed with normalization. Such a move could unwind portions of the longstanding JPY carry trade, potentially contracting global market liquidity and exacerbating the current risk-off environment, thereby sustaining downward pressure on cryptocurrencies.
In the immediate term, focus shifts to today’s U.S. Nonfarm Payrolls and unemployment data. A labor market report that supports the case for a sustained dovish pivot from the Federal Reserve could provide a temporary reprieve for risk assets, potentially easing the current selling pressure in digital markets. However, in the absence of such supportive data, the confluence of fragile equity sentiment and tightening global liquidity conditions suggests the path of least resistance for cryptocurrencies remains challenging.
Bitcoin has sustained a decisive technical breakdown, breaching the critical support level at $88,160. This level had previously established a double-bottom formation, providing a foundation for several prior rebounds. Its failure represents a significant deterioration in market structure, invalidating that bullish pattern and solidifying a bearish near-term bias.
The breakdown suggests that selling pressure has overcome the concentrated buyer interest that previously defended this zone. This shift opens a path for a deeper corrective phase, with the next significant support cluster projected near the $84,000-$85,000 area.
Momentum indicators uniformly corroborate the bearish shift. The Relative Strength Index (RSI) is declining toward oversold territory, reflecting strengthening downward momentum. Concurrently, the Moving Average Convergence Divergence (MACD) has crossed below its zero line and continues to trend lower, confirming that bearish momentum is accelerating.
The $88,160 level now becomes immediate resistance. Any technical rebound is likely to encounter selling pressure at this former support zone. For the bearish structure to be challenged, Bitcoin would need to reclaim and sustain a position above $90,000. The prevailing technical picture suggests the path of least resistance remains downward, with the failed double-bottom pattern often leading to an accelerated move toward the next support threshold.
Resistance Levels: 89,915.00, 93,581.00
Support Levels: 80,300.00, 74,565.00
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