This technical warning comes amidst rising macroeconomic risks. Pol,,yma,,rket assigns a 97% probability that the Bank of Japan will raise interest rates, with markets expecting a 0.25% increase on December 19. Historically, tightening monetary policy by the Bank of Japan has put pressure on high-risk global assets, with yen trading volumes declining.



Bitcoin has reacted negatively to the last three interest rate hikes by the Bank of Japan, dropping approximately 27% in March 2024, 30% in July 2024, and another 30% in January 2025, according to digital currency analyst Quinten.

Why might the current Bitcoin market cycle be different?

Despite similarities to previous cycles, the demand pattern for Bitcoin has changed. Glassnode data shows corporate holdings of Bitcoin growing from around 197,000 BTC in early 2023 to over 1.08 million BTC today, a 448% increase. The supply of long-term Bitcoin holders remains high, and spot Bitcoin ETFs have contributed to sustained institutional inflows.

These factors do not eliminate downside risks but suggest that future declines may be less severe, driven by absorption rather than panic selling.

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BasheerAlgundubivip
The collapse of the equivalent Bitcoin path increases the likelihood of an 80% correction: an experienced trader.
#البيتكوين is under renewed pressure, as veteran trader Peter Brandt warns that Bitcoin may have broken its equivalent trendline — a signal that in previous bull markets preceded sharp corrections. While the situation appears bearish, the current cycle also shows significant structural differences.

The collapse of the #Bitcoin equivalent path increases the probability of an 80% decline

Brandt pointed out that previous Bitcoin bull cycles were followed by equivalent rallies that ended in failure, leading to prolonged declines. Historically, these corrections approached 80% of the cycle’s highs but did not exceed them. The current #BTC path has already broken, with the price dropping about 20% from its all-time high.

This does not guarantee an immediate crash, but it places Bitcoin in a zone where downturn volatility has historically increased, especially under tighter global financial conditions. If history repeats itself, an 80% correction could signal a return to around $25,000 in the coming months.

Macroeconomic pressures are exacerbating the technical breakdown.

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