Bitcoin “Bear Thesis” The new rejection of $93,500 keeps the team in play

BitcoinBTCThe US employment data prompted the markets to react negatively as they reacted against a 2025 annual open.

Important points

• The strong US labor market data does not dampen hopes for a rate cut in December.

• Crypto is continuing to differ from stock markets despite predictions that stocks will have a good finish in 2025.

• Bitcoin needs to overcome several key resistance levels if it is to change the status quo.

Fed “no option” over rate cut

The Data of Cointelegraph Markets Pro The following are some examples of how to get started: TradingView BTC prices weakened on surprisingly lower US unemployment claims.

The data collected from the St. Louis Fed. 

Even though this is a signal that the economy will be resilient, and therefore, labor markets are strengthening, there have been some market volatility. doubled down On expectations that Federal Reserve will lower interest rates during its December 10th meeting.

Analysis argued that the reason was an increasing gap between consumer strength and risk assets.

“The Fed has no option: Even as inflation hits 3%, the Fed MUST cut rates to ‘save’ US consumers,” The Kobeissi Letter writes in its article about trading resources that the Kobeissi Letter is a resource to trade. latest commentary On X. 

“Consumers are struggling while large cap tech stocks are soaring. More rate CUTS are coming into one of the hottest stock markets in history. Own assets or be left behind.”

The idea is that a cut in the rate would encourage more liquidity to flow into risk and crypto assets. A cut would theoretically support further liquidity inflows into crypto and risk assets. Cointelegraph reportedEven the possibility of Japan raising rates soon was a contradiction, given that its central bank had just completed a $135-billion economic stimulus package.

Kobeissi described Japanese society as a whole is undergoing a “free-for-all.”

“Japan is printing stimulus, yet raising rates? Something is broken,” It is a good idea to get a hold of someone else. summarized Alongside a photo of 30-year bond records,

Mosaic Asset Company warned, however, that future Fed rate reductions were not guaranteed.

“While market-implied odds point to an 89% chance of a third consecutive rate cut, deep divisions are emerging on the forward path of interest rates,” It is written in the a blog post The day of the event 

“While that could inject volatility into the stock market, underlying market internals are evolving very favorably for a rally into year-end.”

Bitcoin Bear Case Analysis “remains strong”

With the S&P 500 just 0.5% off new all-time highs, Bitcoin and altcoins continued to stand out as weak players.

Related: Bitcoin looks increasingly like it did in 2022: Can BTC price avoid $68K?

Multiple resistance levels needing to be overcome are on the horizon for traders. 

The 50-week moving averages (SMA and EMA), as well as liquidity nearer to $100,000 are also of note.

“Looking for a retest at the 50-Week SMA, but need to clear resistance in the $96k – $98k range first,” trading resource Material Indicators told X-followers alongside a graph of Binance’s order book liquidity data. 

“Too soon to call this a bull market recovery. Need to clear those resistance levels with a healthy RSI at the Weekly Close before we can have that conversation.”

The aforementioned is a subsequent postMaterial Indicators claimed that Bitcoin not flipping the annual open yet was an “indication that the bear thesis remains strong.”

Cointelegraph reported In an earlier post, we looked at various BTC indicators to try and draw a conclusion on the latest bearish market phase.

The article is not intended to provide investment advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.