Bitcoin dips below $89,000 in a low-liquidity market as investors reduce exposure ahead of a busy macroeconomic week.
Ethereum shows relative resilience above $3,100, while major altcoins continue their downward trend.
Technical levels and the macroeconomic calendar are the focus for traders, with a key support around $86,000 for bitcoin.
Bitcoin gears up for a macroeconomic announcement-packed week with an initial drop
Bitcoin slipped below $89,000 last night in a low-liquidity market marked by a clear risk aversion. With no specific catalysts in the crypto sector, investors prefer to scale back as a data-heavy and central bank decision-filled week approaches.
Bitcoin is trading around $89,600 at the beginning of the day, down about 0.9% over 24 hours. For the week, BTC remains slightly positive, but still shows a decline of around 7.6% over a month. A movement that reflects a market in a prolonged consolidation phase after the excessive volatility seen earlier in November and December.
Ethereum holds strong, altcoins continue to suffer
In this context, Ethereum shows relative resilience. ETH holds above $3,100, up slightly by 0.4% over 24 hours, outperforming bitcoin in the short term. This contrasts with the persistent weakness of major altcoins.
Solana, XRP, BNB, dogecoin, and Cardano all declined on Sunday, extending a negative trend established for several weeks. Over a month, most still show double-digit losses, confirming the absence of rotation towards the riskier assets in the crypto market.
The total market capitalization is around $3.15 trillion, down 0.8% over 24 hours, with volumes around $89 billion. Typical figures for a Sunday, but also reflecting a lack of conviction. Bitcoin’s dominance remains high, close to 57%, indicating that investors favor market liquidity and depth.
Technical levels under scrutiny
On the technical side, some analysts urge caution, highlighting that the $86,000 zone is a key support for bitcoin. A decisive break of this level could pave the way for a more pronounced correction, in an environment where buyers remain cautious.
For now, the market is trading in a narrow range, with rebound attempts being sold off quickly. The decrease in volatility suggests a period of waiting rather than a clear turnaround.
Traders await macro signals
This caution is due to a particularly dense macroeconomic calendar. In the US, investors will monitor employment indicators, inflation figures for November, flash PMIs for December, and several speeches from Federal Reserve officials. These data points could influence rate expectations.
Internationally, attention is also on Japan. The Bank of Japan is expected to raise its policy rate to 0.75% this week, after over three years of inflation above the 2% target. Although monetary policy would remain accommodative, a gradual tightening could weigh on carry trade strategies funded in yen, a significant source of liquidity for risky assets, including crypto.
Waiting for these events, the crypto market remains at a standstill. Low volumes, little risk-taking, and bitcoin stuck below $90,000, waiting for the next macroeconomic signals.
