Bitcoin Edges Higher as Market Eyes Bank of Japan Rate Hike

The Bitcoin price has surged by a fraction of a percentage in the last 24 hours to trade at $89,647 on a 28% drop in the daily trading volume to $45 billion.

The drop in BTC price comes amid growing market conviction that the Bank of Japan will raise interest rates at its December 18–19 policy meeting. Data from Bloomberg and prediction markets point to a near-certain 25-basis-point hike following hawkish remarks from Japanese policymakers.

Historically, BOJ rate increases have coincided with 20% to 25% Bitcoin pullbacks, largely due to the unwinding of the yen carry trade, which triggers a shift away from risk assets. Analysts warn that intensified volatility could push Bitcoin toward the $70,000 zone.

On-chain data already reflects rising bearish positioning, including a large leveraged short opened by a whale trader. However, much of the expected rate move appears to be priced in, with limited expectations for larger hikes.

Long-term investors continue to accumulate during the downturn, with Michael Saylor signaling further Bitcoin purchases. While short-term pressure may persist, some strategists anticipate a recovery once macro-driven uncertainty eases.

Bitcoin Price Stabilizes After Sharp Pullback

Bitcoin’s daily chart shows the price trying to stabilize after a strong pullback. BTC is currently trading near the $89,600 level after bouncing from the $80,000–$82,000 support zone. This area has proven important, as buyers stepped in quickly and prevented a deeper decline.

The reaction suggests demand is still present despite recent selling pressure driven by macro uncertainty. The broader trend weakened after Bitcoin failed to hold above the $110,000–$115,000 region. This zone now acts as a strong resistance area and marks where sellers took control.

BTCUSDT Chart Analysis. Source: Tradingview

The clear break of structure (BOS) shown on the chart confirms the shift from bullish to bearish momentum, leading to the sharp drop seen in November.

Bitcoin Bulls Defend Key $80K Support

At current levels, price action appears to be forming a rounded base, signaling that selling pressure may be slowing. The chart also highlights a possible parabolic recovery setup, but this remains unconfirmed. For a stronger bullish signal, Bitcoin needs to reclaim the $92,000–$95,000 range.

A successful move above this zone could open the door for a retest of the $100,000 psychological level. If the price fails to break higher, consolidation is likely. Moreover, the RSI (14) is sitting in the mid-40s, recovering from oversold conditions but still below the neutral 50 level.

This indicates that bearish momentum is waning, although buyers have not yet fully taken control. A move above 50 would support further upside.

Bitcoin holding above the $80,000 support remains key. A confirmed breakout above resistance would signal trend improvement rather than just a temporary bounce.