What to Know:
- Bitcoin’s price remains range-bound, fluctuating between $91,000 and $93,000 as bulls and bears struggle for control.
- Ether is showing strength, with ETF inflows suggesting a rotation of capital from Bitcoin into the Ethereum ecosystem.
- Macroeconomic uncertainty is increasing volatility, as traders adjust rate cut expectations following weaker-than-expected jobs data.
Bitcoin is currently navigating a choppy market, struggling to break free from its defined range. The leading cryptocurrency has been unable to sustain a move above $93,000, reinforcing a pattern of seller resistance and buyer support. This tug-of-war is creating a challenging environment for traders seeking clear directional momentum.
The short-term technical outlook suggests that Bitcoin is still within a descending structure that began in early November. Bulls need to reclaim $93,200 to negate this downtrend, while a break below $91,000 could expose support levels at $90,000–$90,500. Intraday recovery attempts are fading, which indicates liquidity remains thin above current levels.
Ether is displaying relative strength, with ETF inflows indicating a shift in capital from Bitcoin. Over the past week, ETH has outperformed major assets, while Bitcoin spot products saw net outflows. This divergence suggests investors may be seeking opportunities within the Ethereum ecosystem.
FxPro analyst Alex Kuptsikevich said bitcoin’s brief test of $94,000 earlier in the session met “not yet too aggressive” resistance from sellers, adding that the market may not face firmer pushback until the $98,000–$100,000 zone.
Macroeconomic data is adding another layer of complexity to the market. A weaker-than-expected ADP payroll report has increased expectations for a December rate cut, leading to volatility in the dollar index and risk markets. These external factors could influence the price action of Bitcoin and other cryptocurrencies.
Bitunix analysts said the market has entered a “composite phase of macroeconomic turning-point expectations plus internal capital rotation within crypto,” pointing to ETF flows and uneven liquidation patterns as evidence of divergence in risk appetite.
Despite the current uncertainty, there are positive developments supporting the broader crypto market. Institutional adoption continues to grow, with Vanguard opening access to crypto ETF trading and Bank of America suggesting institutional allocations to digital assets. The CME’s launch of a volatility index for Bitcoin futures also signals increasing maturity in the market.
The cryptocurrency market remains in a dynamic state, influenced by technical factors, ETF flows, and macroeconomic developments. While Bitcoin is currently range-bound, Ether is exhibiting strength, and institutional adoption continues to grow. Investors should closely monitor these trends as the market evolves.
Source: Original article
