Bitcoin (BTC) 
$87,270.31 price It started to rise after inflation was well below expectations. Soon it started to fall as expected. It seems that negative sentiment will remain dominant in cryptocurrencies until 07:30 tomorrow. So what is the reason for the decline? Why is the rise not permanent and what will happen at 07:30?
Why Are Cryptocurrencies Falling?
Japan’s interest rate decision will be announced at 07:30 in the morning and there will probably be an increase. Since this will feed carry trade concerns cryptocurrencies has been causing downward pressure on it for a long time. The pressure has intensified this week, and we talked about this happening on Sunday and why investors should look at this week’s rises as a trap.
Negativity in the short term Japan interest rate decision It looks like it will continue until we get over it. Therefore, as expected, the rise driven by inflation data was short-lived and things quickly reversed. BTC fell below $ 86 thousand and reached $ 85,481.
If you examine the chart above, you will see that the bear flag has broken down and attempts to reach the support level have failed. Although attempts have been made to retake the key region for four days, it has failed and each attempt turns into a hunt for liquidity. The prey are excited investors pursuing day trading. Although many analysts target 76 thousand dollars due to the break in the bear flag, the short-term recovery after the morning’s interest rate decision may bring gains up to 96 thousand dollars. However, the tariff court decision and the MSCI delist meeting in January will likely bring deeper bottoms.
